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The Commodity Fueling Bitcoin’s Rise

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The Commodity Fueling Bitcoin's Rise

(Shanghai)

We ran a story last week highlighting how it is emerging markets, especially those with unstable politics or economies, or currency controls, which are fueling the furious rise of bitcoin. But what is the engine powering the technology itself? The answer is that bitcoin's big growth has been powered by coal-a highly emitting substance-and led to strong gains in coal consumption. The majority of all bitcoin "mines", or the computer warehouses that undertake the hugely energy intensive action of solving the complex math underlying each bitcoin transaction, are in China. As bitcoin gets more popular, the energy demands grow.

FINSUM : The "guts" of bitcoin are a very dirty industry, and not just because of its popularity for illicit business, but also because it is being held up by one of the world's most polluting industry's.

  • Commodities
  • bitcoin
  • mining
  • coal
  • China

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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