There are many people in the world who think differently about cryptocurrency mining.. Some see cryptocurrency mining as a waste, while others think these operations are necessary to strengthen individual cryptocurrency networks.. Mining also provides a kind of “fair” distribution of mining power and rewards.. Christine Lagarde thinks mining cryptocurrencies is too expensive and consumes a lot of electricity. There is no doubt that he is right about this, but he does not offer much as a solution to this problem.
The IMF is known to be under a lot of pressure when it comes to cryptocurrencies.. While the IMF has no intention of regulating cryptocurrencies, everyone is curious about the IMF’s stance on cryptocurrencies.. However, Christine Lagarde is not very positive about Bitcoin.. He even thinks Bitcoin mining has too many “electrical enemies”. A bit of a strange definition yes but nothing to do. Lagarde worries that Bitcoin mining will consume as much electricity as Argentina next year.
Dislikes Bitcoin Mining
No one can deny that cryptocurrency mining consumes a lot of electricity. Mining always consumed a lot of electricity, even though the hardware had improved over the years.. Consumers on the Bitcoin network today consume more than 37GWh per day. Now that’s right, that means a lot of electricity is being consumed.. Large mining companies are also moving to regions where electricity is cheap or where renewable electricity sources can be found in order to cope with this consumption somehow.. The rest of the miners don’t have that luxury.
However, it’s unclear what Christine Lagarde wants to do about it.. His comments do not address anything clearly and unequivocally.. Of course, you can interpret these comments that Bitcoin mining will try to be regulated legally in the future.. There is no doubt that we will see some studies in this area.. But we can only guess how they will unfold.. After all, the IMF has no jurisdiction over such matters.. All Lagard can do is talk about it and hope someone will listen.
With over 80% of Bitcoins mined today, it’s obvious that electricity consumption will not decrease.. With fewer coins to mine and the increasing mathematical difficulty, miners have to load extra hardware into the network.. In this way, electricity consumption will continue to increase.. We do not think that Lagarde will be too pleased with these developments.. Still, the Bitcoin mining/regulation relationship could turn out to be quite an interesting one in the years to come.
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