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Recently, it was reported that Bitcoin mining now consumes as much as a quarter percent of the entire world’s electricity supply, putting it on par or higher than many small nations.

However, the actual emissions and impact on climate change, according to a new study, aren’t as negative as once believed.

Bitcoin Mining Emissions Aren’t As Bad As Once Believed

Bitcoin’s blockchain network is secured and validated through a process called proof-of-work, where “miners” utilize powerful computer processing to solve complex mathematical equations.

Related Reading | Bitcoin Mining Now Consumes A Quarter Percent Of Global Electricity

Specially designed computers consume large amounts of electricity in order to solve these mathematical equations. Miners are rewarded for their time, effort, and expensive in electricity with a set amount of Bitcoin – currently at 12.5 BTC.

Mining difficulty rises as time goes by, requiring more and more energy supply. Meanwhile, the reward miners receive for their efforts and money invested decreases at each scheduled halving – a pre-coded event where the block reward miners receive is cut in half.

Because over time, both BTC earned is reduced but energy requirements continue to rise, Bitcoin has been cause for concern in terms of its overall impact on the climate. However, a new study has revealed that the impact Bitcoin has on climate change, is significantly smaller than once thought.

China Accounts For 47% Of The Crypto Asset’s Carbon Emissions

Susanne Köhler and Massimo Pizzol of Denmark’s Aalborg University claim that previous studies used data that assumed electricity generation in China – where as much as half of all Bitcoin mining takes place due to cheaper energy costs – was the same across the board.

But the new study breaks down emissions within China to a regional level, showing much lower emissions of 17 megatonnes of CO2. The previous study had nearly four times the amount of emissions pegged to Bitcoin, at 63 megatonnes of CO2 per year.

For example, hydropower in the Chinese province of Sichuan contributed to lower overall emissions, while Mongolia’s coal-favored energy sources added to it significantly.

Overall, China alone accounts for 47% of all of Bitcoin’s carbon emissions, from a global standpoint. Canada, Russian, and the United States follow, in terms of global leaders contributing to Bitcoin-related emissions.

The study also further points out that it is almost entirely the electricity used for Bitcoin mining that contributes to the emissions, and that the production and disposal of mining equipment only accounts for just 1% of Bitcoin’s total emissions.

Related Reading | Major Bitcoin Milestone: Only 3 Million BTC Left To Mine

Because Bitcoin’s mining is decentralized and spread throughout the world, Köhler and Pizzol say its difficult to get an accurate read on emissions, and that more data is needed to truly understand its impact on climate change.

With the crypto asset’s network only growing, and mining difficulty increasing, energy consumption will only grow as well, the discussion of Bitcoin’s impact on climate change will likely continue for the foreseeable future.

Tony Spilotro , 2019-11-20 19:00:04

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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