Mertayasa
Active member
The most popular cryptocurrency in the world, Bitcoin turns out to have several drawbacks. Professor of economics at Cornell University, mining Bitcoin is bad for the environment. These cryptocurrency assets are also considered not to function well as a currency. One interesting aspect is that other cryptocurrencies have found solutions to overcome some of Bitcoin's weaknesses.
1. Damage the environment
Bitcoin mining refers to the energy-intensive process required to generate new coins and ensure a secure and verified payment network. The electricity used when transactions are validated on the Bitcoin block chain, as well as the mining process, certainly not good for the environment. Tesla CEO Elon Musk also said last month that his electric car company would stop accepting Bitcoin as a form of payment due to environmental concerns. He later said in a tweet that Tesla would accept Bitcoin in transactions if it could confirm the reasonable and clean use of energy by the miners. Cryptocurrency miners use custom built computers to solve complex mathematical equations that effectively allow coin transactions to be carried out. However, the entire process used to create Bitcoin requires a lot of energy and can consume more power than entire countries like Finland and Switzerland, according to the Cambridge Bitcoin Electricity Consumption Index.
On the other hand, Ethereum as the second largest cryptocurrency which is sometimes seen as an alternative to Bitcoin comes with a different mining method that requires less energy.
2. Does not guarantee the confidentiality of identity
Earlier this month, US law enforcement officials said they could recover $2.3 million in Bitcoin paid to the cyber criminal group involved in the Colonial Pipeline ransomware attack in May.
The FBI said its agents were able to identify a virtual currency wallet that hackers used to collect payments from the Colonial Pipeline.
3. Doesn't work well as currency
In theory, Bitcoin should provide an anonymous and efficient medium of exchange but it doesn't work in . On the other hand, these digital coins are considered slow and cumbersome to pay for goods and services, and the market is highly volatile. Bitcoin is prone to big swings in volatility, as seen from its 30% one-day drop last month.
1. Damage the environment
Bitcoin mining refers to the energy-intensive process required to generate new coins and ensure a secure and verified payment network. The electricity used when transactions are validated on the Bitcoin block chain, as well as the mining process, certainly not good for the environment. Tesla CEO Elon Musk also said last month that his electric car company would stop accepting Bitcoin as a form of payment due to environmental concerns. He later said in a tweet that Tesla would accept Bitcoin in transactions if it could confirm the reasonable and clean use of energy by the miners. Cryptocurrency miners use custom built computers to solve complex mathematical equations that effectively allow coin transactions to be carried out. However, the entire process used to create Bitcoin requires a lot of energy and can consume more power than entire countries like Finland and Switzerland, according to the Cambridge Bitcoin Electricity Consumption Index.
On the other hand, Ethereum as the second largest cryptocurrency which is sometimes seen as an alternative to Bitcoin comes with a different mining method that requires less energy.
2. Does not guarantee the confidentiality of identity
Earlier this month, US law enforcement officials said they could recover $2.3 million in Bitcoin paid to the cyber criminal group involved in the Colonial Pipeline ransomware attack in May.
The FBI said its agents were able to identify a virtual currency wallet that hackers used to collect payments from the Colonial Pipeline.
3. Doesn't work well as currency
In theory, Bitcoin should provide an anonymous and efficient medium of exchange but it doesn't work in . On the other hand, these digital coins are considered slow and cumbersome to pay for goods and services, and the market is highly volatile. Bitcoin is prone to big swings in volatility, as seen from its 30% one-day drop last month.
