US government tracking the energy implications of booming bitcoin mining in US.

Over 2 percent of the US’s electricity generation now goes to bitcoin::US government tracking the energy implications of booming bitcoin mining in US.

    • makeasnek@lemmy.mlEnglish
      0·
      9 months ago

      The previous poster is alleging BTC is being “pumped” by tether because tether is collateralizing their coin by buying BTC. I’m pointing out that they also buy USD yet nobody is complaining that USD is being pumped.

      If you buy a stablecoin, the hope is that the stablecoin is tied to an actual dollar (or whatever it is supposed to represent). This means if you buy $1 in tether, tether should buy $1 USD on the open market, put it in a vault, and wait until somebody else comes back to sell that dollar back to Tether. But you can buy other stuff too, other assets, which when you start managing large amounts of money is important for risk management. Plus they can make some returns that way. Some stablecoins pass the returns on to people who hold the stablecoin. Generally, these stablecoins are collapses waiting to happen for these and many other reasons.

      • TypicalHog@lemm.eeEnglish
        1·
        9 months ago

        Do you genuinely believe the impact of Tether buying Bitcoin on Bitcoins price is comparable to the impact of Tether buying USD to USD “price”/value? Like fr?

        • makeasnek@lemmy.mlEnglish
          1·
          9 months ago

          I’m not saying it doesn’t impact the price, I’m saying it doesn’t matter. Bitcoin’s current price looks like a steal to me if it’s going to be the underlying currency for the global economy.

          All currency is speculated on. The market finds the right price. Then it corrects. The price goes up and down. That’s how markets work. The USD is guaranteed to lose value and buying power over time due to an inflationary supply. That’s not even throwing in the US’s declining role as a global currency hegemon and the reduced demand it causes.

          Bitcoin? It could go up or down relative to other currencies or goods, but my portion of the supply relative to the whole will always be the same. That’s why I buy bitcoin.

          • TypicalHog@lemm.eeEnglish
            11·
            9 months ago

            I do agree BTC might be a steal rn. But saying Tether didn’t have anything to do with pumping crypto is laughable at best.
            Also, I believe Cardano will be the currency for the global economy (but more likely multiple coins, including BTC). But that’s just my opinion.

            but my portion of the supply relative to the whole will always be the same. That’s why I buy bitcoin.

            This may be true for Cardano, but not for Bitcoin. As more BTC gets mined, your percentage of the total supply goes down, because you are not getting those coins but the miners are. So you have to keep buying it to keep your percentage of the total fixed. Since most BTC is already mined that’s not really a problem IMO anyways. But yeah.

            UPDATE:

            As more BTC gets mined, your percentage of the total supply goes down

            My mistake, I was thinking about the current supply. Brain fart. It’s the same with ADA. 1 ADA is the same percentage of the total supply 5 years ago or now.

            • makeasnek@lemmy.mlEnglish
              1·
              9 months ago

              This may be true for Cardano, but not for Bitcoin. As more BTC gets mined, your percentage of the total supply goes down

              This is so terribly incorrect. Bitcoin has a fixed supply. Those miners are selling those coins on the open market and they are running out as you say. 1 BTC is the same portion of the total final supply it was a year ago or 10 years ago.

              • TypicalHog@lemm.eeEnglish
                2·
                9 months ago

                My mistake, I was thinking about the current supply. Brain fart.
                It’s the same with ADA. 1 ADA is the same percentage of the total supply 5 years ago or now.