The appalling results of the “Crypto Winter”
The crypto market plummeted in May, leaving all the investors, institutions and the market in a hopeless condition. The market saw billions of dollars being wiped out in the market crash. The extent of the market was at such an extent that many crypto experts and critics believe that this is the official entry of the market into a deadly phase called as the “Crypto Winter.”
The appalling affects of the “Crypto Winter” has shattered everyone in the market. The crypto institutions, companies are laying-off people and are adopting the action of freezing the accounts of the customers. The downfall of the market has gone to the extent where it is affecting the miners of the cryptocurrencies. The electricity consumption for the cryptocurrency reduced by at least 50% as the crypto winter wreaks havoc all around the market.
Consumption of electricity reduces as the value of cryptocurrencies decline.
As the “crypto winter” continues to eat away at “miners'” revenues and the financial contagion spreads deeper throughout the sector, media sources claimed that the biggest cryptocurrency networks’ electricity consumption has plummeted by up to 50%.
Bitcoin which happens to be the largest cryptocurrency network in the globe definitely consumes the most amount of electricity for the mining process. But it was reported that, the electricity consumption of bitcoin had fallen by at least one third, down to an annualized 131 terawatt-hour a year. Even after a steep fall, the amount of electricity consumed by bitcoin miners equals the annual consumption of a country called Argentina.
Ethereum also saw a decline in the electricity consumption for mining activity. The “Programmable Money” witnessed a steep fall of electricity consumption from 94TWh to 46TWh. The key point to be factored in here is that both the cryptocurrencies had the same reason for their fall out.
Miners also facing the blunt of crypto market implosion.
In the current crypto market, all the people involved in the market in any potential is facing the heat of the eruption caused by the crypto explosion. The price of bitcoin which was at its peak at $69,000 was reduced to $20,000 which also resulted a decline in the reward for the miners of the cryptocurrency. This drop in reward actually had a direct impact on the consumption of electricity for mining. Due to reduced rewards, the miners stopped using the expensive electricity and started using outdated, inefficient mining rigs unable to turn into a profit.
