Bitcoin price has fallen from almost $70,000 in the second half of 2021 to less than $17,000 per bitcoin (One viral memecoin skyrocketed in the new year,).
now, Serious existential fears swirl at some of the world’s largest bitcoin and cryptocurrency companiesgeopolitical strategist Peter Zeihan outlines that Bitcoin’s price could fall below zero.
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Bitcoin “does nothing, is not a store of value, nor is it a medium of exchange. It’s heaven.” accidental superpower, Said Podcaster Joe Rogan.
“[Crypto] If we move to a world with a carbon tax, we have to take into account the energy to produce it in the first place, so we are currently heading towards zero, except for Bitcoin, which will probably be negative. ”
Bitcoin “is starting to be priced properly now,” Zeihan said. The price of bitcoin will drop “another $17,000. This product has no intrinsic value.”
A distributed digital ledger, the Bitcoin blockchain is maintained by so-called miners, who use powerful, energy-hungry computers to secure the network in exchange for Bitcoins.
After China kicked out bitcoin miners in 2021, the US became the world’s largest bitcoin mining nation, contributing about 38% of the so-called bitcoin hash rate. according to to the Cambridge Bitcoin Power Consumption Index.
According to Digiconomist’s Bitcoin Energy Consumption Index, Bitcoin mining uses a staggering amount of energy to power and cool computers, and by 2022 will consume as much electricity as all of Sweden.
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Renewable energy sources account for about 40% of Bitcoin’s energy consumption, but the Bitcoin Energy Consumption Index puts the Bitcoin network’s carbon footprint at the same level as Hong Kong.
Carbon taxes have been introduced in recent years by countries around the world in an attempt to reduce CO2 emissions. Last June, Danish parliamentarians agreed to Europe’s highest corporate carbon tax. However, the United States does not have a carbon tax at the national level, and the Biden administration considers the idea politically risky and difficult to pass Congress.
Despite Bitcoin’s price crash last year, many, along with billionaire Shark Tank star and Bitcoin critic-turned-crypto investor Mark Cuban, believe that the price will eventually rise. I’m still convinced it’s going to explode. reveal when he will buy bitcoin again.
“Bitcoin has become an ideology,” Zeihan said. “People who really like bitcoin are convinced that it is the currency of the future and that distributed ledgers are the way to go, and anything controlled by a government agency is by definition negative, private I’m sure it would be better if it was done by departments, but that’s not how currency works.”
Bitcoin’s scarcity, with a fixed supply of about 21 million bitcoins that rivals digital gold, is one of the reasons why bitcoin is superior to the government-backed so-called fiat currencies that central banks can create. Listed by the bulls.
“One of the craziest things about Bitcoin is that it can never have more than X units. [because] By default, that means it can’t be used for trade,” Zeihan said. Currency inflation occurs when a currency is pegged to a certain number, and it is he one of the fastest ways to destroy an economic model. ”