In December I wondered whether the price of Bitcoin would reach $30,000 by Christmas. Cameron and Tyler Winklevoss were canny enough to invest $11m in Bitcoin back in 2013, when it cost them just $120 per coin..
Spookily, the Bitcoin price chart pretty much matches that exactly so far, suggesting we could be in for the big crash phase any day now. The thing with currencies, and gold (with which Bitcoin has been frequently compared), is that their value depends on the scarcity of supply..
If you print currency the way Zimbabwe did, you’d soon end up needing a wheelbarrow to carry the price of a loaf of bread (if you can find something big enough to carry the price of a wheelbarrow in the first place). For its scarcity, Bitcoin (and other cryptocurrencies, like Ethereum) depend on the complexity of its mining algorithm..
In November, the energy being used to power Bitcoin mining was estimated to be higher than the consumption of the Republic of Ireland — and it’s rapidly heading higher. But does anybody really think that computing power is not going to expand dramatically in the long term, and its energy requirements fall?.
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