There is a cost to the promise of unlimited access, freedom from government authorities and little or no regulation and the ability conduct transactions anywhere and anytime. One of the most controversial topics around digital assets is crypto mining. Despite Bitcoin being the most popular cryptocurrency on the market, its mining process is one of the most controversial. Nearly every BTC investor knows about the negative sides to investing in Bitcoin. One of these is its mining process.
The public ledger of Bitcoin is not centrally controlled. Instead, miners constantly improve Bitcoin’s network. Bitcoin’s price has seen many highs and lows over the last few years. This has drawn a lot attention from the media worldwide about the negative effects of Bitcoin mining. Experts predict that Bitcoin mining could also negatively impact the cryptocurrency market by 2022, as more investors choose sustainable investment options.
While mining several cryptocurrencies has progressed from the initial stage of dangerous cryptocurrency mining, many major cryptocurrencies still use harmful algorithms that consume large amounts of energy and leave large carbon footprints. The government has urged the crypto industry to find alternative ways to create more cryptocurrency, including improvements in mining methods. Additional requirements include the registration of mining datacentres.
Experts believe that Bitcoin’s decline and other crypto markets are partly due to the negative effects of crypto mining and Bitcoin. This trend is expected to continue into 2022, as more Bitcoin miners from North America, Russia and Europe deploy more machines to mine Bitcoin. This suggests that investors will start to look for more sustainable investment options, which could adversely impact crypto investments in 2022.