Current events point to the mid-term death of Bitcoin

Current events point to the mid-term death of Bitcoin

By felipejoys | felipejoys nongaming | 3 Jun 2021


Bitcoin is on fire!

A point of interest in many industries converge in Bitcoin in a way that can't be ignored in the long term. Governments, global environment and the cryptocurrency economy dictates there's a limited time to safely HOLD what is currently the main cryptocurrency. Since ETH 2.0 is on its way while it dominates the market even now, crypto traders must consider how long further will they pursue profit in Bitcoin.

The environmental issue is actually the greatest threat of all to the most famous "store of value" token in the market, because mining requires a low temperature location to become profitable. Hardware maintenance is affordable only when equipment doesn't break from constantly overheating, which is equal to cheap cooling. But it is estimated Bitcoin mining raises the world's temperature by an average of 2º Celsius every year since 2018. As time goes on, we will have traveled through one of a few paths, but end up in the same place.

Scientists writing in the journal Nature warned in 2018 that Bitcoin’s growth could single-handedly push global emissions above 2 degrees Celsius.¹

Because everywhere will be a lot warmer, there will be too few places available where mining is still profitable due to the increasing electrical costs. Bitcoin mining will become extremely centralized and the total number of farms will shrink. A lot less Bitcoin workers available means transaction fees will skyrocket, and the network would be more vulnerable to a 51% attack, which leads to complete discredit as an investment. As an alternative, global warming would reach a critical point where it can no longer be ignored, resulting in banning all energy-based crypto mining.

what will ultimately solve the issue of high gas fees on Ethereum will be scalability, which is expected of Ethereum 2.0 as layer 2 solutions will be implemented on the new mainnet²

Meanwhile, all exchanges have already listed ETH as a trading pair. ETH 2.0 moves the network away from mining, keeping it safe from all of Bitcoin's issues. Gas fees will be reduced. Most crypto apps are on ETH. Besides day trading, there might not even be a reason to hold Bitcoin at all anymore.


DISCLAIMERS

I use BTC in an exchange as a trading pair sometimes, but I don't hold either BTC or ETH.

Sources: [¹][²]

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felipejoys
felipejoys

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