Exaaactly, people don't understand that mining cryptos needs a huuuge amount of electricity! And we have an "energy crisis" ……
Great question. It is consuming quite a lot. So in areas where there is a lot of mining going on, there is definitely a huge demand of energy. Might be worth digging into it.
On the other hand, if energy is expensive and cryptos are created by using a huge amount of energy, what is the logical consequence? Value, price, supply and demand????
What did Ethereum do recently?
‘Green’ crypto Ethereum wins applause in Brussels, Washington
Crypto’s appetite for electricity has attracted ire from both sides of the Atlantic. But that could soon change.
Cryptocurrencies are facing scrutiny from lawmakers on both sides of the Atlantic. But a switch by one of the largest crypto networks, Ethereum, to more eco-friendly processing techniques is being welcomed by lawmakers.
While most cryptocurrencies rely on energy-intensive "mining" to authenticate transactions, Ethereum — the second-most valuable cryptocurrency behind Bitcoin — on Thursday is completing a switch to a less demanding process.
Under its old system, Ethereum required as much electricity as Chile does in a year to run its software to process and record crypto transactions on a public online bookkeeping ledger, known as a blockchain. Generating this amount of electricity comes with a large carbon footprint. Bitcoin, the most widely-traded cryptocurrency, is even more voracious. But after years of planning, Ethereum's operators are switching over to a new system that uses a tiny fraction of the energy consumed by the old one, without taking the network offline.
That switch — or "merge," as it's being called by enthusiasts — has been widely anticipated by lawmakers in Europe and the United States, who are concerned about cryptocurrencies' massive carbon footprint and energy demands at a time of skyrocketing energy prices.
The merge, which is expected to cut Ethereum’s energy use by 99.95 percent, could serve as a catalyst for other cryptocurrencies to follow in its path, winning cautious applause from policymakers…….
Follow link for full article
https://www.politico.eu/article/ethereums-eco-friendly-merge-win-plaudit-eu-us-lawmaker/
Quite a huuuuge amount of energy!!!!!
…… So-called proof-of-work systems for authenticating blockchain transactions have a bad reputation with lawmakers — so much so that a group of lawmakers in the European Parliament tried to push through an EU ban on the software earlier this year.
That initiative failed. But lawmakers in Brussels have continued to look for ways to rein in crypto's carbon footprint, agreeing that crypto companies must disclose how much energy they use as part of the EU’s single rulebook for the industry, which comes into force in 2024. …….
https://www.politico.eu/article/ethereums-eco-friendly-merge-win-plaudit-eu-us-lawmaker/
Not sure, but it definitely would block all transactions and mining for this period of time. I would say it would create huuuuge losses. Also have in mind that a lot of illegal trade is getting paid with Cryptos…… Drugs, Organs, kids, sex, porn, black money, black operations, weapons….. whatever you can think of.
Well Ethereum recently came up with a different solution cutting their energy use by 98%
Sooooo Ethereum is ahead of the game. Gotta watch those guys and with whom they do business or work together.
On 15 September 2022, Ethereum transitioned its consensus mechanism from proof-of-work (PoW) to proof-of-stake (PoS) in an upgrade process known as "the Merge".[11] Consequently, Ethereum's energy consumption rate was reduced by about 99.95%, translating to an estimated 110 TWh of annual energy savings (110 billion kilowatt-hours).[12] The upgrade required no actions from Ethereum's users.[13] During the Merge, Ethereum's proof-of-work mining mechanism was replaced with the Beacon Chain, a proof-of-stake blockchain network secured by validators staking ether.[14]
Source: Wikipedia…… yeeeesssss, I know…..
No idea yet, still diggin on that one. I just find the timing of that "Merge" very innerdasting. Also the fact that other cryptos have not taken significant action into that direction yet or not notably……. So Ethereum is definitely something to watch
Oh, btw, the founders of Ethereum are Russian and Canadian. Now Canada is part of the Commonwealth and the Queen just died. Not sure if that is significant but I just found that innerdasting as well.