Cryptocurrencies are experiencing a cryptocrash, again. Although a few weeks ago the drop could be attributed to the lack of liquidity of the project was revealed Moon stablecoin and your TerraUSD token, right now you can't figure out what happened. There are those who attribute it to the rise in interest rates, but what matters is that the cryptocrash in which Bitcoin and Ethereum find themselves is much greater than to be able to attribute it to a single fact. It is for this that it has been seen that cryptocurrency mining falls very noticeably.
In the case of Bitcoin, on June 10 it began to fall without rebounding from the threshold of $30.000, which made it a good investment at less risk at that point. But the reality is that its price at the time of writing these lines has dropped to $21.170, a loss of almost a third of its value in less than a week. Already in the case of Ethereum, its value fluctuated close to 2.00 dollars at the beginning of this month, but now it is worth a little more than 1.100 dollars, with which in fifteen days it has lost almost half of its value.
In a few days, the crypto mining activity equivalent to the consumption of an entire country has dropped
With all this, it is normal that the cryptocurrency mining activity has dropped considerably. But what is surprising is that it has been immediate and the difference in energy consumption is the same as if Austria had suddenly been switched off. The reason is simple: miners who have abandoned the activity are no longer covered by the energy cost of selling cryptocurrencies.
According to Digiconomist, as the decline of Bitcoin and Ethereum continues, the combined reduction in power consumption of these networks now is equal to that of a country like Austria. The reduction in global carbon emissions could be 110.000 metric tons of CO2 per day, almost as much as the global CO2 reductions from electric vehicles.
Seeing that the value of cryptocurrencies aspires to continue to decline, it is to be expected that mining will also and with it its emissions. Consumption has not been reduced to pre-pandemic levels, but it would not be risky to bet on it. Along with the decline of cryptocurrency, it is expected that many GPUs will try to be put up for sale on ebay and other second-hand websites for miners to try to liquidate their assets. All in all, this is starting to be a good time to buy a graphics card.
Source: DigiEconomist
