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Bitcoin is flying again: this is why and how much it costs to mine cryptocurrencies

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After the fears of September, the bitcoin which marks the largest increase since last July. In fact, the queen of cryptocurrencies records a rise in the8.9% at $ 47,331, after reaching even $ 48,000 during the session, thanks to a maximum increase of 10%. The reasons for the jump are not clear, which follows a decline of 7.6% accumulated in September in the wake of fears of a strict regulation in the US and China on cryptocurrencies: Traders cited by Bloomberg point to a number of reasons for the gains, exasperated by the volatility of the asset. Some point to the assurances of Fed chairman Jerome Powell, who said of “not having the intention” of banning cryptocurrencies while others refer to the levels of some data, such as moving averages, used in technical analysis.

Still risks

The news of the rise in bitcoin comes on the same day that another less reassuring one spreads: the risks to financial stability related to crypto assets are not yet systemic but “must be monitored given the global implications and inadequate regulatory contrast in many jurisdictions “. This was stated by the IMF in one of the analytical chapters of the Global Financial Stability Report that will be presented during the annual meetings of the Fund. According to IMF data, the market capitalization of crypto assets increased significantly to reach $ 2 trillion in September 2021. And Bitcoin remains the dominant crypto asset even as its market share has plummeted from 70% to less than 45%. %.




The material cost

The theme of sustainability is always topical. In other words, to mine Bitcoins “according to some estimates, it consumes about 0.36% of the world’s electricity“comparable to the consumption of countries like the Belgium or Chile. Photographing the energy burned by cryptocurrency ‘miners’ is still a chapter of the Global Financial Stability Report dedicated to this type of instrument, observing how this activity “can lead to a significant increase in domestic energy consumption, especially in countries that subsidize energy costs “. The Fund estimates that “future generations of Ethereum and other smart blockchains will consume much less energy than Bitcoin” but warns of rapid ‘migrations’ of cryptocurrency mining activity, such as that following the restrictions adopted by China, with effects on the energy needs of other countries.

The energy of volcanoes

Meanwhile, the first Bitcoin mined using the energy of El Salvador’s volcanoes. A project on which the president Nayib Bukele had given information just over a day ago, and which today, although still in the testing phase, has begun to produce its own
Bitcoin. “An extraordinary news for all BTC fans, but also for those who have already invested in the coin – explains Gianluca Grossi of Criptovaluta.it who first launched the news in Italy – the reason is simple: this could be the green turning point that everyone was waiting for further expansion of BTC in the corporate and financial fields ”. President Nayib Bukele, through an official on Twitter, confirms that Bitcoin mining has started using volcanic energy, or rather, geothermal energy, which is obtained from the many volcanoes that insist on the territory of El Salvador. A story that actually has relatively deep roots, because immediately after the announcement of the Ley Bitcoin that made the cryptocurrency legal tender in the country, we started talking, again through the mouth of the Salvadoran president, about the possibility of exploiting low geothermal energy. cost for Bitcoin mining.

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