The Ecological Future of Crypto and The Blockchain
Crypto and Blockchain are going through what I can only call a “rhetorical” or “Optic” slump. No one can deny the benefits of the Blockchain and Crypto’s although I am still sceptical can remain useful as a temporary token of exchange. The Ecological viability in the face of Climate change, is at the very least, tenuous. However, I do have a Optimistic view of the future in regards to Crypto’s Ecological Viability. But there is going to be another slump, but it won’t be because of the Ecological side, it will be a Philosophical hump and Political hump that Cryptocurrency and Blockchain enthusiasts will have to get over.
The first thing is that, the blockchain will get smaller, temporarily in order to cope with the energy inefficiencies in the Blockchain. This will translate to Ethereum and any other stable coins as well. Some countries will have more computers and servers for the blockchain than others, which will pose a threat to some Miners on the chain. However, due to the ever changing electrical grid around the world, I propose that the slump in Blocks on the chain will only last a Maximum of 10 years. Based on the Current political climate.
Due to the Blocks dwindling this will result in the Blockchain being temporarily centralized in a few countries. Countries with the highest levels of Renewable energy will have the highest number of servers and Mining centres. This will mean that Countries like the United States, China, India, Brazil, Germany and Japan will have greater energy efficiency of their sections of the Blockchain and thus continue as normal.
Naturally this may result in the Price of Bitcoin jumping up a fair bit due to temporary cut in supply. But also increased Fractionalization in regards to faucets and increased Gas prices to get things from A to B. As for what to do, or expect. If you are a long term holder of Crypto, you might benefit from it. But I wouldn’t hold out much hope on that fact. Due to greater centralization, the instability will shoot up greater than normal. So this is purely speculative, but if you are holding for better gains, the next 2 years would be a good time to consider diversifying your portfolio even more than you normally would. Bonds are a good bet, both private and public bonds, Fortune 500 stocks, gold or an index fund. But by all means, keep doing what your doing, I’m just a Socio-economist who will pass by in your life like a fart in the wind.
It wouldn’t be me if I didn’t at least try to rally you, so If you wanna decrease the slump, or potentiality of said slump. Call your Politicians, speak to those you can and try to get more renewable energy built in your country. Because then I reckon we can collectively reduce that slump by 5 years or more. Overall, I think if you are a Long term holder, you should be fine. If you are a short-termer, you might (<45% certainty) be fine on that. But if you are a crypto-only long term holder, you are going to have a hard time recouping any investment, especially with the oncoming instability hike.