- #1
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New cryptocurrencies are being created. What advantages can a new cryptocurrency claim that aren't already features of older cryptocurrencies?
What advantages do new cryptocurrencies claim?
- Thread starter Stephen Tashi
- Start date
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SUMMARY
New cryptocurrencies are emerging with claims of advantages over older ones, particularly in finding energy-efficient alternatives to proof of work. The discussion highlights the misconception surrounding cryptocurrency volatility, asserting that cryptocurrencies like Bitcoin are stable compared to traditional assets. Bitcoin's energy consumption is noted, with estimates of around 129 terawatt-hours annually, raising concerns about its long-term viability due to environmental impacts. The conversation also touches on the role of stablecoins, such as USDT, BUSD, and USDC, which aim to mitigate volatility by pegging to state-backed currencies.
PREREQUISITES- Understanding of cryptocurrency fundamentals
- Knowledge of proof of work and its alternatives
- Familiarity with stablecoins and their mechanisms
- Awareness of energy consumption in blockchain technologies
- Research energy-efficient consensus mechanisms in cryptocurrencies
- Explore the role and functioning of stablecoins like USDT and USDC
- Analyze the environmental impact of Bitcoin mining
- Investigate the implications of cryptocurrency volatility on traditional asset classes
Cryptocurrency enthusiasts, blockchain developers, environmental advocates, and investors looking to understand the evolving landscape of digital currencies and their implications.
- #2
DavidSnider
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The big one these days seems to be finding alternatives to proof of work which require lots of energy.
- #3
BWV
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People sometimes falsely claim cryptocurrencies are volatile, when in fact they are extremely stable - it is only with their introduction have we learned how volatile are the prices of every else in the economy. Just the other day the value of my house, car and stock portfolio (denominated in Bitcoin) increased by 30% then fell by about the same amount
- #4
russ_watters
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You are joking, right?BWV said:
- #5
fluidistic
Gold Member
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I think he's partially joking. Some cryptocurrencies are called stablecoins for a reason, they (try to) follow states-backed up currencies. (USDT, BUSD, USDC, etc.). They are volatile but not that much, I think.russ_watters said:
- #6
fluidistic
Gold Member
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I think there is a lot more going on than that (see Polkadot... although, 2016 can be barely considered new in the cryptocurrency world!). Over my head to give an answer to the OP.DavidSnider said:
- #7
BWV
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More seriously, Bitcoin consumes around 129TW of electricity relative to a market cap of around $1T. at 10 cents/kWh that would be an annual electric bill of around $13B , or 1.3% of the market cap. Of course most of the Bitcoin power consumption comes from lower cost sources - hydro and geo in the west, with the majority coming from aging coal plants in China. Combine this with the fact that Bitcoin is the enabling technology for ransom ware and other criminal activities I cannot imagine that governments will tolerate it for long.
- #8
Leo Liu
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The frame of reference you used is non-inertial. Took me a second to realized it.BWV said:
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