Hi,
as China banned cryptomining and Kazakhstan has some issues with the peacekeepers there, we might see a drop in POW miners.
Electricity prices have skyrocketed all over the world and with a drop of the crypto market we might see more and more miners getting unplugged.
In Europe, for example, there are a lot of environmentalists, that underline the high power consumption of the miners. Even if the electricity is green generated, it does take from the resources of the other fields.
This leads to critique and a slight resistance in acceptance of crypto. We see even in El Salvador, people complaining that only now the government is building cheap and green electricity sources for BTC mining, but the population still needs to pay for the imported one.
Now comes the ethical question and maybe the evolutionary one, shall we switch the proof of work crypto to other types like proof of stake that does not consume so many resources?
From my point of view, this is a no-brainer. As crypto evolves, it needs to be sustainable and why not greener.
By stopping miners, electricity shall get cheaper, as there will be a lot of green certificates freed up, which are having a big price impact.
Also, the chip market will take a breath as it can direct the needed chips to relevant industry branches. For example, there are waiting times of over one year for new cars, due to this lack of chips. If the chip demand gets smaller, the waiting time will be reduced and also the price shall stabilize.
ETH is moving in the right direction with the ETH2.0, but the miners are not wanting to do it, as they will lose the income stream. Here I hope that upgrade will not be delayed again, as it is only damaging ETH. It is expensive to use just because of the miners that are too blind to see the damage they are causing.
So, in my point of view, POW shall be buried as soon as possible. It is outdated, and we need to evolve in crypto. This is not greenwashing, it is only a fact that POW makes crypto more expensive to use than needed.
What do you think?
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Yes. This is obvious. Proof of Work in cryptocurrency needs a lot of electricity. Somewhere I read that Bitcoin is consuming more electricity than Argentina (yes, the whole country). So in terms of energy consumption, Bitcoin is equivalent to a whole country, as if there would be one more country on Earth, which crazy/insanely high.
Yes, it is. Insane and this is why people might turn against it.
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I think POW will decrease but it won't go away for good. It's like asking BTC to no longer be POW and I don't think that will happen. Of course POW doesn't really sound that appealing and the energy shortage doesn't help. If we do have energy surplus in the future due to technology, we might also see a re-emergence of POW.
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I am still going to hang onto my BTC, but most of the projects that I am investing in these days are all Delegated Proof of Stake or Proof of Stake.
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The EU is discussing a ban of mining with POW
Im totally with you on that - POW is a dinosaur. Worked for a long time, but won't be able to survive in changing times. Though perhaps there might be a "shark" token, which continues existing in a part of the crypto environment due to specilization ;)
In my eyes, BTC (and similar coins) is crypto-gold - has worth because people believe in its worth, but no or limited use cases. And the less people believe in its superiority above all other coins...
Even reducing BTC to "first among equals" would be good and could make the markets more stable.