Various countries are considering banning cryptocurrency mining due to high energy consumption

The announcement by the Kosovo authorities that they would temporarily ban the mining of cryptocurrencies resulted in the sale of more equipment needed for this activity.

The government of this country has decided on a ban in order to alleviate the energy crisis.

Among other things, the equipment used for cryptocurrency mining consumes a lot of electricity.

These are extremely high-power computers.

Cryptocurrency mining in one of the poorest countries in Europe is very attractive.

One Bitcoin is traded for more than 37,700 euros.

On the other hand, the price of Kosovo’s electricity is the lowest in the Old Continent, and the reason for that is that 90 percent of electricity in domestic production is obtained from lignite, which this country has in large quantities.

In addition, the government subsidizes energy bills.

According to the online edition of the Guardian, it is assumed that this mining is most present in the north of Kosovo, where the predominantly Serb population lives.

Most of them do not recognize the independence of Kosovo and, according to the British paper, have not paid for electricity for two decades.

The number of cryptocurrency miners was increasing and they managed to make good money on it.

However, it seems that the decision of the Kosovo government is a bad time for cryptocurrency mining.

This raises the question of the future of mining Bitcoin and other cryptocurrencies.

The University of Cambridge has calculated that mining Bitcoin consumes 125.96 terawatt-hours of electricity worldwide annually.

This is more than the total annual electricity consumption in Norway, Argentina, the Netherlands, and the United Arab Emirates.

The inability of the Kosovo government to meet the need for increased electricity consumption has resulted in an energy crisis.

Many households were left without electricity and electricity prices went up.

Due to that, the authorities were forced to import electricity and subsidize its payment to households.

Kosovo is not the only country that has banned cryptocurrency mining.

It was announced that this will be done in China, which is the world’s largest industry for this activity. They also decided on a ban in Iceland.

It is likely that mining of this kind will be questioned by the authorities of the United States of America, Kazakhstan, and Russia.

Among the most important reasons for that is the high electricity consumption.

In the previous year, cryptocurrencies exploded, and analysts predict an even more interesting market in 2022, here are the currencies that could disappear

Cryptocurrencies were marked last year when they entered the investment mainstream.

However, analysts predict that this year could be even more interesting in the cryptocurrency market.

Almost every cryptocurrency, from Bitcoin to Dogecoin, has reached record values and made astonishing gains.

However, in May, about 50 percent of the total market value was wiped out in just seven days.

And in September, the Chinese government launched a real war against cryptocurrencies, which led to a ban on all transactions.

Other important cryptocurrencies from 2021 occurred when El Salvador made bitcoin a legal tender, numerous meme tokens exploded, and one NFT was sold for an incredible $69 million.

What will cryptocurrency markets bring us this year?

Arcane Research, a blockchain research company, has made dozens of crypto predictions for 2022.

Narrow correlation between Bitcoin and the S&P 500 index

Despite the threat of global economic recovery due to the growing number of coronavirus cases, both Bitcoin and the S&P 500 achieved impressive growth in 2021: Bitcoin jumped 66 percent and the S&P 500 rose about 27 percent.

However, given that Bitcoin has increasingly acted as a risky asset, Arcane Research predicts that it will further intensify significant stock market movements.

“Therefore, if the stock market continues to grow in 2022, Bitcoin will probably surpass it,” they predict.

“But if we see a red year for the stock market, Bitcoin is likely to fail.”

Ethereum will surpass Bitcoin again

Although it has long figured as the second violin, ETHER far surpassed Bitcoin in 2021, soaring 418 percent compared to “only” 66 percent of Bitcoin growth.

“This gap in performance has been the biggest since 2015 when Ethereum was launched,” Arcane said.

Among the reasons why Ethereum will continue to outperform in 2022 is the increase in NFT sales. Most of these tokens still run on the Ethereum blockchain.

Most meme coins will disappear

Investors have seen meme coins have huge oscillations in 2021.

For example, Shiba Inu rose by a staggering 44,540,000 percent last year.

And squid, a cryptocurrency named after the popular Netflix series “Squid Game”, jumped more than 75,000 percent in less than a week and soon disappeared.

“We can’t analyze the 2021 market without mentioning last year’s absurd mime coin,” says Arcane Research, adding that the phenomenon will be remembered as “a historical relic of the absurd times of 2021.”

The USD coin will surpass the Theter

Tether has been at the top for some time as the largest stablecoin in terms of market value. However, that may change this year, especially with the decision of the USD coin to join the wave of lending.

“Innovative lending products that pay high returns for stablecoin deposits have been primarily the drivers of stablecoin growth,” Arcane Research said.

Bitcoin will remain closely linked to the VIX

Stock markets were a stellar success last year, but one pattern crystallized, according to Arcane Research:

“Fear in broad financial markets has directly affected Bitcoin performance.”

The rise in the CBOE volatility index, or VIX(better known as the fear index), followed the Bitcoin sell-off.

Arcane Research warned that market winds this year could have implications for the short-term trajectory of Bitcoin prices.

Mask solved the biggest mystery of cryptocurrency? “I think this man created Bitcoin”

The world’s biggest cryptocurrency mystery – the true identity of the person who created Bitcoin, known as Satoshi Nakamoto, is still unknown.

However, the richest man in the world, Elon Musk, claims that the Hungarian cryptocurrency expert Nick Szabo could be Nakamoto writes Russia Today.

“You can look at the evolution of ideas before the launch of Bitcoin and see who wrote about those ideas,” Musk told artificial intelligence researcher Lex Friedman on his podcast.

The leader of Tesla also rejected claims that he could be Satoshi, saying that he would not hide it.

Musk said that he cannot say with certainty that he knows who created Bitcoin, but Sab’s theories seem to him to be the basis of the first cryptocurrency.

“It seems like Nick Szabo is probably, more than anyone else, responsible for the evolution of these ideas,” he said.

“He claims that he is not Nakamoto, but it seems that he is more responsible than anyone else for the ideas that led to Bitcoin,” Musk stated.

In 2014, a team of researchers studied Nakamoto’s document on Bitcoin together with the writings of Szabo and 10 other potential creators of this cryptocurrency.

“The number of similarities between Sab’s writing and the Bitcoin White Paper is incredible,” they said, adding that “none of the other possible authors were nearly as accurate.”

Before Bitcoin was launched in 2008, Szabo commented on his blog “the intention to create a living version of a hypothetical currency”.

He developed the mechanism of digital money known as Szabo Bit Gold between 1998 and 2005.

However, this cryptographer, also known for his research on digital contracts, has repeatedly denied that he was the inventor of Bitcoin.

The third largest cryptocurrency rose 1300% in 2021: Can it threaten Bitcoin?

By comparison, Bitcoin rose 65 percent, while Ether, the second-largest token, rose 408 percent.

This year, the old guard of cryptocurrency has lost its position in relation to tokens with higher yields.

Researchers predict that the trend could continue.

Among the three largest digital tokens, in terms of market value, Binance Coin, or simply BNB, has significantly surpassed its two major rivals – Bitcoin and Ether.

Coin, issued by the crypto exchange Binance Holdings Ltd. – jumped approximately 1,300% in 2021, according to data available to Arcane Research.

By comparison, Bitcoin, the market leader, rose “only” 65 percent, while Ether, the second-largest token, rose 408 percent.

The BNB is widely used on Binance, the world’s largest cryptocurrency exchange.

It is also the home currency of Binance Smart Chain, a blockchain platform that supports smart contracts for use in decentralized finance (DeFi) and other applications.

As the BSC gained supporters over time, it helped increase profits in the BNB token, according to Fortune.

Other alternative coins, or “altcoins”, made big gains in 2021, thanks to an “explosion” of investor interest in digital assets and the expansion of crypto ecosystems.