The Crypto Market is thriving, even with its volatile nature. Investors can make a return quickly or save for an event in the future with the various types of currency on offer within the market. But, if you’re new to cryptocurrency, knowing the ins and outs is key so that you can make informed decisions that will benefit you. Choosing an investment research platform means that you can decide the best way to invest, so you can be successful. Cryptocurrency is becoming more popular, but did you know it is affecting normal life? Read on to find out more.
What is cryptocurrency?
Cryptocurrency is a digital currency that can be exchanged and used to make financial transactions, and it does not rely on any central authority like a government or bank. It operates differently than you might find with traditional money and is not widely accepted due to market volatility. Cryptocurrencies are generally currencies that people invest in and expect the value to rise – this can either result in an easy way to make a bit of cash depending on how you invest, or it can lead to huge losses. So, why is it so popular?
Why is it becoming so popular?
With such a volatile market, it may be difficult to see why cryptocurrency is so popular but there are a few reasons why more of us are exploring our options when it comes to the crypto market. The volatility of the market itself is one of the main ways in which we can take advantage, the higher the risk, the higher the reward, so doing a bit of research means that investors have the chance to make a profit. It is also a good option for anyone looking to trade long and short term – it can help investors meet imminent goals, as well as in the future. When it comes to trading on any crypto platform, transaction fees tend to be limited, so you can maximise your profits without paying any out. Some of the most popular cryptocurrencies you may have already heard of include Bitcoin, which is the most highly valued, as well as Ethereum and tether.
How does it affect normal life?
You may not realise it, but bitcoin can harm our day-to-day lives. The amount of electricity and energy that it takes to mine cryptocurrency means damage to our environment, and unfortunately when it comes to mining, the more power the better. Below, we’ll take a closer look at how the crypto market is having a negative effect on the environment.
Crypto and Energy Use
As mentioned above, mining is a process which uses excess electricity. The mining process verifies new transactions for a currency via an algorithm. If a miner can solve this algorithm, they will earn a portion of this currency as a result. They are designed to be difficult, but because of this, use a lot of power when being processed. Mining computers require a huge amount of power and energy to complete the process which therefore leads to more damage being done to the environment.
So, what are the consequences of the amount of energy this currency is consuming? To put it into perspective, it is said that a single bitcoin transaction equals 79 days’ worth of power that your average American household uses – imagine how much power that equates to when there’s an average of 240,000 transactions taking place in a day! Bitcoin produces a huge amount of carbon dioxide too, and a lot of facilities are powered by coal, which increases the use of fossil fuels.
What can be done to help?
Thankfully, the world is taking steps to recognise the environmental issues that come along with cryptocurrency and is looking for new, environmentally friendly ways to complete the process. One of the most obvious ways that countries are cutting their carbon footprint is by limiting the use of cryptocurrency and transactions altogether, as well as looking for ways in which they can be mined without the use of fossil fuels, by building facilities that use renewable power. Environmentally friendly currencies are also being created, that reduce the amount of time needed to mine, as well as produce coins that are powered by solar energy.