The crypto market is on fire almost literally from the coal to support the algorithms. Elon Musk released a couple tweets further exposing the underlying concern and immediately billions of dollars were taken off the crypo market valuation. So much for Bitcoin being a firm hedge against inflation or a global currency….at least not yet with one person seemingly having the power of a centralized global bank.
Musk indicated that they are looking into a more eco-friendly cryptocurrency that uses <1% of Bitcoin’s energy per transaction. That comment is likely to spark a new wave of investments into some more efficient, lesser known crypto’s, at least in the short term. According to TRG Datacenters, the following table shows the energy consumption of some of the more popular digital assets.
Get the full story here from TRG Datacenters.
The move to more eco-friendly cryptocurrencies is likely to grow. The concerns over crypto energy consumption are not new but it has been moved up to the front burner. It seems evident that Bitcoin has an uphill battle unless its miners can show they’re using renewable energy sources instead of fossil fuels to fuel their algos.
So what’s next? Which cryptos will rise to the front page next?
Dogecoin, Safemoon, and Shibtoken have recently stolen the headlines but can they sustain the momentum. What is their carbon footprint and what is the total supply of each coin? These are Just a couple of questions that crypto investors may be asking more often. The answers are likely to shake up the mix of crypto markets with a new phase of rebalancing.