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- PoW mining system is harmful to the environment, and its repercussions may be serious
- Ethereum might overtake Bitcoin as the latter may be in a bubble that might burst anytime
- Digital currency is currently paving the future of finance with the latest PoS system to reduce energy consumption remarkably
Ethereum’s Canadian-Russian co-founder Vitalik Buterin believes that Bitcoin needs to upgrade itself remarkably to survive in the crypto market. He reiterated that Ethereum might overtake Bitcoin soon as it shifts to a PoS system that uses consensus algorithms. Ethereum’s price fell to $1900 levels in the recent bear market that echoed in the crypto world. However, retracement did take place, but a record high of $4384 is a distant dream. The major concerns surrounding the bubble are the PoW used by Bitcoin and its rising fuel emissions.
Efficient energy usage is the worldwide motto
Bitcoin miners use electricity as much as half of the UK. The whole process consumes 133.68 terawatt-hours of electricity per year. New miners are attracted to mine Bitcoin due to rising prices and rewards to be earned. A research study establishes the fact that 65% of crypto mining is carried out in China. It all boils down to the amount of fuel emitted and the environmental hazard that it creates.
Buterin acknowledges the benefits offered by the PoW system, but they cannot outnumber its disadvantages. Ethereum’s upgrade to PoS is purportedly to reduce energy emissions by 99.95%, which is something to look forward to for the crypto maniacs. It is equivalent to consuming electricity as that of a small village. An efficient blockchain network is surely going to walk the last mile with ease.
Crypto is a significant part of the new world currently under formation
Excessive usage of non-renewable sources and machines working overtime is bound to burst any bubble. Satoshi Nakamoto has formed the digital currency knowing that energy consumption is a feature and not a downside. Experts’ contrarian belief is no shock to citizens of the world but has shaken investors to the core.
We can prevent a bubble from bursting with research and development as Bitcoin prices have risen 200% since late 2020. Furthermore, Buterin’s public wallet holds 335,500 ether that also took a hit in the recent dive. The 27-year old’s digital currency’s energy consumption will drop to 2.62 MW after the system upgrade.
A philanthropic that abides by growth and logical reasoning
Being a college dropout, Vitalik believes in exponential growth that can only happen when unlearning something. The PoS will help crypto investors and lead to overall growth and development of the digital asset.
His philanthropic endeavors have an everlasting appeal: India’s fight against COVID or the AI development project undertaken at Machine Intelligence Research. Decentralized finance is currently driving the growth of the world in a new avatar and direction.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
