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Bitcoin’s price has fallen from around $70,000 in late 2021 to less than $17,000 per Bitcoin (although one viral memecoin has surged in the new year).
With some of the world’s biggest bitcoin and cryptocurrency companies now facing serious existential fears, geopolitical strategist Peter Zeihan explains how bitcoin’s price could fall below zero. is outlined.
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Bitcoin “does nothing, is not a store of value, nor is it a medium of exchange. will be accidental superpowertold podcaster Joe Rogan.
“[Crypto] If we move to a world with a carbon tax, we have to take into account the energy to produce it in the first place, so we are currently heading towards zero, except for Bitcoin, which will probably be negative. “
Bitcoin “is starting to be priced properly now,” Zeihan said. The price of bitcoin will drop “another $17,000. This product has no intrinsic value.”
A distributed digital ledger, the Bitcoin blockchain is maintained by so-called miners, who use powerful, energy-hungry computers to secure the network in exchange for Bitcoins.
After China kicked out bitcoin miners in 2021, the United States became the world’s largest bitcoin mining nation, contributing about 38% of the so-called bitcoin hash rate, according to Cambridge’s Bitcoin Power Consumption Index.
According to Digiconomist’s Bitcoin Energy Consumption Index, mining Bitcoin uses a staggering amount of energy to power and cool computers, and by 2022 will consume as much electricity as the entirety of Sweden.
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Renewable energy sources account for about 40% of Bitcoin’s energy consumption, but the Bitcoin Energy Consumption Index puts the Bitcoin network’s carbon footprint at the same level as Hong Kong.
Carbon taxes have been introduced in recent years by countries around the world in an attempt to reduce CO2 emissions. Last June, Danish parliamentarians agreed to Europe’s highest corporate carbon tax. However, the United States does not have a carbon tax at the national level, and the Biden administration considers the idea politically risky and difficult to pass Congress.
Despite the Bitcoin price crash last year, many believed that billionaire Shark Tank star and Bitcoin critic turned crypto investor Mark Cuban is buying Bitcoin again. By clarifying when to do so, we are confident that the price will eventually rebound.
“Bitcoin has become an ideology,” Zeihan said. “People who really like bitcoin know that bitcoin is the currency of the future, that distributed ledgers are the way to go, that anything controlled by a government agency is by definition negative, and something done by the private sector. I’m sure it would be better, but that’s not how currency works.”
Bitcoin’s scarcity, with a fixed supply of about 21 million bitcoins that rivals digital gold, is one of the reasons why bitcoin is superior to the government-backed so-called fiat currencies that central banks can create. Listed by the bulls.
“One of the craziest things about Bitcoin is that the number of Bitcoin denominations will never exceed X. [because] By default, that means it can’t be used for trade,” Zeihan said. Currency inflation occurs when a currency is pegged to a certain number, and it is he one of the fastest ways to destroy an economic model. “