Peter Brandt says Bitcoin is “useless without an excessive use of energy”
Bitcoin has seen harsh criticism from climate activists and environmentalists
Veteran trader Peter Brandt has taken aim at Bitcoin’s energy consumption. In response to a tweet made by MicroStrategy CEO Michael Saylor, who tweeted on July 19: “Bitcoin is a digital commodity because it has no issuer and is backed by energy,” the veteran trader replied that the leading cryptocurrency was “useless without an exorbitant . use of energy.”
Secured by energy only in the sense that it is unusable without an exorbitant use of energy – and then without providing an economic function. It’s a big myth like that $BTC is anything but energy consumption.
— Peter Brandt (@PeterLBrandt) 21 July 2022
He wrote: “Secured by energy only in the sense that it is useless without an exorbitant use of energy – and then without providing economic function. It is a big myth that BTC is somehow anything but energy consumption,” added he to.
In a follow up tweet said veteran trader admitted he owns Bitcoin and accepts most of the current bullish narrative.
#bitcoin
I own Bitcoin and accept most of the current bullish narrative
However, we’re going out on a limb to assume that $BTC will forever represent the pinnacle of human ingenuity and achievement and that humanity will not surpass its essentials pic.twitter.com/dsy3VjKrlB— Peter Brandt (@PeterLBrandt) 21 July 2022
As reported by U.Today, ahead of Bitcoin’s recent bearish action, the veteran trader predicted that Bitcoin might not reach a new all-time high until early 2024.
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Bitcoin’s energy consumption
Bitcoin has seen harsh criticism from climate activists and environmentalists for the amount of energy the network needs to operate.
According to June data from the Cambridge Bitcoin Electricity Consumption Index, Bitcoin’s estimated annual electricity consumption was around 93 TWh. This figure puts the energy use of Bitcoin on par with South Africa, but less than Argentina and Norway.
However, the energy use of the lead crypt is still higher than in Finland. Currently, this figure is 81.65 TWh.
Mining profitability decreases as the price of Bitcoin falls. As a result, less productive miners are discouraged from being online, potentially resulting in reduced power consumption and hash rate. According to reports, Bitcoin’s energy usage fell by 25% in the past month as the price fell to a low of around $17,500 in mid-June.
