This morning, it appeared as if Bitcoin was headed toward a head and shoulders formation.
There is no doubt that the past several weeks have been a wild rollercoaster ride for cryptocurrency investors. Going from all time highs of $64,000 to almost dropping below $30k in less than 1 week.
Even after news of China regulating mining, news of institutional investors pulling out of bitcoin and reinvesting into Gold, Bitcoin has managed to settle at a health range between $38,000-$40,000.
The latest issue with Bitcoin has revolved around the amount of energy that Bitcoin transactions consume because of mining. While Bitcoin mining does tend to consume a considerable amount of energy in terms of profitability, the overall global impact seems to be much less substantial.
160,000 TWh of annual electricity is created every year— Darin Feinstein (@DarinFeinstein) May 25, 2021
120 TWh of that energy is used by the bitcoin network
That is only
less than .1% of all power.
The bitcoin industry is getting a disproportionate amount of attention to power for a reason…
Despite all of the negative news surrounding Bitcoin, breaking $40,000 is a significant milestone, showing that Bitcoin and cryptocurrency are far from over. The cryptocurrency community is a global force to be reckoned with and will continue to push forward.