Not long ago, Elon Musk expressed enthusiastic support for Bitcoin and even added it to Tesla's list of payment instruments.. However, later his opinion changed, BTC was anathematized and even went down in price for a while: it turned out that the damage to the ecological state of the planet was the cause.
The fact is that this cryptocurrency (just like any other cryptocurrency) requires computing power. As you know, Bitcoin operates on the Proof of Work, consensus algorithm, so to confirm a transaction in it, network participants must perform complex computational processes.
The system works so that the increase in demand and the number of miners in the network provokes an increase in the complexity of mining. That is, the more popular VTS or its analogue becomes, the more computing power is required to obtain it.
In the case of Bitcoin, the situation is extremely critical: to issue coins, it is necessary to use sophisticated equipment that consumes an incredible amount of electricity. That is the main problem.
Scientists estimate that Bitcoin mining alone consumes enough electricity to power an entire country. This is especially true for mining pools: services that combine the computing power of different computers to mine cryptocurrencies more efficiently.
For example, the problem was quite acute in China: before the government sanctions, this zone was literally the heart of cryptocurrency mining and suffered the most from it. Also mining on an industrial scale is developed in countries with cheap electricity tariffs and is often illegal.
However, electricity — is not the only problem. The fact is that cryptocurrency mining provokes huge carbon dioxide emissions into the atmosphere: about 10 megatons in the case of BTC alone.
There is a chance that the problem will solve itself: the relevance of mining is gradually decreasing. The fact is that it is a technically complex, expensive process, which simply does not pay off in the case of the average user.
By acquiring equipment at a price of $1,000 or more, the miner is trying to recoup its price: this can take several years. And the situation will worsen if the mined currency suddenly starts to fall in price.
Staking, possible in cryptocurrencies based on the Proof of Stake algorithm, begins to replace classic mining. The process has similarities with the traditional bank deposit. At first glance less profitable, but simpler and more accessible, it has a far less destructive effect on the environment.
This approach allows you to earn with minimal investment, to try different investment instruments, and to reduce risk with a well-thought-out risk-management strategy. This approach allows you to earn with minimal investments, try out different investment instruments, and reduce risk with a well-thought-out risk management strategy.
And to start investing, you can exchange cryptocurrency on AvanChange.