“Bitcoins must be sold now”: crypto researcher Kyle McDonald’s warning

Crypto power consumption has become a major bone of contention for environmental activists and governments, with McDonald saying that Bitcoin will never see “$69,000” again. The cryptocurrency traded close to that mark last November.

03 September 2022 10.53

Kyle McDonald, an independent researcher, predicts that the Bitcoin network may become “regulated”, causing its price to collapse.

And recommend selling bitcoins now. The reason is that after the Ethereum blockchain switched to a drastically less energy-intensive method of validating transactions, known as “Proof of Stake or Merge”Investors and regulators may realize that the energy-intensive method that both Bitcoin and Ethereum now use, called “proof of work,” was never really necessary.

Speaking on CoinDesk TV’s “First Mover” show this Friday, McDonald cited the “climate crisis” and the massive energy use of Bitcoin. He said that because “Bitcoin does not have the coordination of Ethereum to leave a proof of work”, could be “the first to be regulated”.

Crypto power consumption has become a major bone of contention for environmental activists and governments, with McDonald saying that Bitcoin will never see “$69,000” again. The cryptocurrency traded close to that mark last November.

Crypto power consumption has become a major bone of contention for environmental activists and governments, with McDonald saying that Bitcoin will never see “$69,000” again. The cryptocurrency traded close to that mark last November.

When you go from a system it’s about generating as many random numbers as fast as possible with 10 million [de unidades de procesamiento grfico] worldwide, to a system running on a few thousand computers that consume fairly little power, that’s going to make a big difference.McDonald said. Graphics processing units, or GPUs, are used in cryptocurrency mining.

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McDonald said that the possibility of Ethereum reducing energy costs by 99.95% is “very realistic.”

Ethereum’s switch, a software update called “the Merge,” is expected to happen this month, and one expected benefit is that it won’t require as many computers to keep the blockchain running.

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To track the energy movement of Ethereum, McDonald created the Ethereum Emissions Tracker, which takes a bottom-up approach, but does not take into account the price of Ethereum or the price of electricity.

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I’m starting with the hashrate, then I look at the hardware and make a technical argument about how much electricity to use, said.

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One risk, however, relates to non-fungible tokens (NFTs), McDonald said. That is, “there is a good chance that some miners will temporarily switch to proof of work after the merge happens.”

If the miners do change, there could be duplicate NFTs for a short period of time on another chain, he said. If that were to happen, it could “potentially even dilute their values.”

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But OpenSea, the world’s largest NFT marketplace, said it would support only the proof-of-stake chain, adding that it has been preparing for the transition to make sure the “Process runs smoothly.”

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