The price of the world’s most traded cryptocurrency, Bitcoin, continues to rise at the beginning of the new week, even while large investors are still worried and are closely following the events surrounding the war in Ukraine, as well as the moves of the Federal Reserve.
By crossing the $45,000 threshold over the weekend, Bitcoin has virtually “erased” all previous losses in 2022.
At the moment, one Bitcoin is worth $46,000.
As of Friday, its value had risen by about seven percent.
“Over the last six months, cryptocurrencies have shown their resilience and relevance, even when strong negative macroeconomic trends have disrupted traditional markets. Now the cryptocurrency market has the opportunity to shine(again),” Chris Klein, chief operating officer and co-founder of the Bitcoin IRA, told CNBC.
On the other hand, it is possible that new mining initiatives will make an additional rise in cryptocurrencies.
Namely, Bitcoin mining already uses electricity as much as Sweden, which is not very positive news in light of the energy deficit, rising electricity prices, and even when it comes to the environment.
But all that could be changed by simply changing the way Bitcoin is coded.
A campaign called “Change the Code, Not the Climate“, coordinated by the Environmental Working Group, Greenpeace USA, and several international groups fighting Bitcoin mining facilities in their communities, calls on creators of Bitcoin blockchain technology to change the way Bitcoin is used.
The software code that Bitcoin uses – known as “proof of work” – requires the use of massive computer strings to validate and secure transactions.
Proof of work is a way to check whether a miner has solved the extremely complex cryptographic puzzles needed to add to the Bitcoin blockchain.
In contrast, the “rival” cryptocurrency Ethereum uses another system – “proof of stake” – which it believes will reduce its energy use by 99 percent.
The question is, however, whether the transition of Bitcoin to “proof of work” would consequently lead to an increase or decrease in its value, because inputs will be lower, and as a side effect there will be no more complicated tasks for computers, so sales of demanding computer units would fall.