You might know that mask has a huge influence on the cryptocurrency market. His tweet cam changes the trajectory of the entire market
But when musk tweeted this, he wasn’t doing so because he wasn’t sure of their financial viability. Let’s see the dark side of Bitcoin.
Rather he was concerned about bitcoin’s environmental impact. Some researchers at Cambridge University have criticized the mining of cryptocurrencies.
According to a survey if Bitcoin were a country it would be used more energy than the entirety of Argentina in a year.
So why Bitcoin you so much energy? what are the views of people? And what are the different alternatives used by other cryptocurrencies in the Crypto world?
To verify your transaction several people are competing against each other. They basically use powerful computers to try to beat each other and validate the transaction.
Minors are upgrading their computers and using more powerful ones to win this guessing game. So that in this way they can validate the transaction and earn some Bitcoins as a reward.
The high energy consumption is why there is not a lot of mining that takes place in India. Because of higher relative electricity costs as a to other countries like Kazakhstan.
Hence we can say, it is very difficult to fake. Bitcoin transaction. But the downside is the amount of electricity required to approve such transactions.
The proof of work system requires people to compete against each other by solving mathematical problems to validate transactions.
Bitcoin miners are moving from China to two countries that offer cheap electricity such as Kazakhstan and even texas in the United States.