Bitcoin critics point to how bitcoin is not energy efficient. They also keep reinstating this because they think many do not understand this. The vilification of BTC continues; however, Bitcoin has been projected as offering a potential solution to the growing problem of excess renewable energy.
There are some areas where there is an oversupply of energy. This is happening because of cheap renewable and inflexible conventional power stations. When solar or wind power is ample, there is a problem of excess supply to grids. This problem is very recent. In some cases, during certain hours there is excess energy and transporting these excess production is cost prohibitive or not well planned and therefore the power supply gets wasted. In such areas, bitcoin mining is proposed as a method to renew the energy to an asset type.
Dan Held tweeted: “Proof of Work (PoW) is about physics, not code. Bitcoin is a super commodity, minted from energy, the fundamental commodity of the universe. PoW transmutes electricity into digital gold.”
Bitcoin (BTC) FUD and Naysayers
Dan also pointed to how the naysayers make use of unsubstantiated and negative narratives about Bitcoin (BTC) creating FUD when they have missed the boat during the bullish run.
The common reasons cited are no intrinsic value, bitcoin is a bubble, used for money laundering and drugs, high volatility, energy consumption, hacker control, manipulation of Bitcoin, and Tether too! Naysayers find one reason or the other to spread negative news about Bitcoin (BTC).
Every new innovation will be subject to negative comments and it will be ridiculed in the beginning and then accepted later.
Bitcoin according to Dan is the transformation of the world’s physical wealth into the digital world. He also states that he does not know what’s a proper valuation? And also that he does not know, but it’s much higher than here.
A few users tried point to how we have evolved from intangible moving toward tangible. Subtle to gross. Immaterial to material. Thus, establishing an analogy stating that BTC is a new paradigm.
There are others who state that the bitcoin is like the curvature of the earth and that the more you go out the steeper the curve.
Looking at the bullish trends and the profit taking scenarios, those who missed the boat might want to take to the buying of BTC when the price goes down to position themselves well for the next bull cycle. Bitcoin has already come a long way and it has endured enough and it is beginning to prove itself.