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Reconsidering The Environmental Impact Of Cryptocurrencies

Originally published in Dynamics Business

Reconsidering The Environmental Impact Of Cryptocurrencies by Dr. Prash P, CEO Caleb and Brown

The speculative market’s obsession with the dollar value of Bitcoin and its Cryptocurrency cousins has acted as an unfortunately effective smokescreen; One that has obscured the fact that beyond being just an emerging asset class, Cryptocurrencies are, at their core, an emerging technology.

And as with any emerging technology that finds value propositions beyond its most obvious initial purpose, so too does it pose potential issues of concern not readily solved in the present paradigm. One of the more glaring of the latter is that of the energy demands of the technology.

That the technology underlying Cryptocurrencies has a tremendous energy appetite is undeniable. Cryptocurrency mining ( the process underpinning numerous blockchains ) requires enormous computational power and electricity. According to Diginomist’s Bitcoin Energy Consumption Index, Bitcoin itself has an estimated annual electricity consumption of over 73TWh, roughly the energy consumption of Austria. While these numbers may sound alarming, it is worth noting that as the price, market capital and adoption of the industry increase and Cryptocurrency mining becomes more profitable and appealing, this figure looks set to rise.

Image courtesy Dynamic Business

So what does this mean for an industry that has built itself on Libertarian principles but looks to flout the environmentalist persuasions of the liberal Left?

The pessimist’s view would be, as it appears on face value, that this industry is non-sustainable; that these energy demands make for an industry that goes against the view of the future that most progressive thinkers and policymakers aspire towards. Surely, advocating for a technology that looks to drive a positive feedback loop of energy usage driving adoption which incentivises for greater energy use is incompatible with the Futurist’s aim for a greater balance in humanity’s consumption demands.

Conversely and perhaps controversially, I offer an optimistic alternative viewpoint.

The Renewable Electricity Futures Study, perhaps the most comprehensive study into renewable energy projections in the United States, has revealed that the U.S. has the capacity to generate 80% of its electricity from renewable energy sources by 2050. This is not to suggest that it is on track to, for it most certainly isn’t if current energy policies were to hold; Rather that we possess both the technological, intellectual and functional capacity to achieve this if the policy were to align and enable this.

Without treading into the murky waters of conspiracy theory, questions as to why this misalignment exist often point towards the lack of incentives towards this new direction. More pertinently, they point towards the financial incentives inherent in maintaining the status quo and the influence of this on policy.

So if the technology, know-how, and capacity to drive a renewable energy future are waiting in the wings, could Cryptocurrencies and the significant economic benefit that awaits anyone who manages to create a sustainable pipeline that drives this forward, be the incentivising factor necessary to power this change?

Could a Bitcoin be the metaphorical pot of gold at the end of the sustainable energy rainbow?

The reality will, naturally, sit somewhere between these two viewpoints, each on polar ends of the dispositional spectrum.

Regardless, as we look past the dollar value of this market, this will likely emerge as a discussion of considerable significance in the future of this industry.

As the smoke clears.

Dr. Prash is the CEO at Caleb and Brown is available to guide new and seasoned investors.

About Dr. Prash P:
Prash is considered a thought leader in the philosophical and existential implications of this emerging technology and is a regular speaker at industry conferences.

connect with us

Call Dr. Prash on +61 1800 849 149  or Contact Us to discuss further.

Image source: Mashable

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The Future Of Cryptocurrencies

Originally published in Dynamics Business

The Future Of Cryptocurrencies: Look Past The Sec And To The Developing World by Dr. Prash P, CEO Caleb and Brown

This last fortnight has seen a slight resurgence in the price of bitcoin and with it, the entire Cryptocurrency market as a whole. Market sentiment moving past the noise of the SEC’s ETF rejection to which it has been so emotionally pegged is a likely factor, which is reflected in this price rise. However, this focus of speculation being principally centered around major financial markets, powerful industry players and regulators has ignored a very large portion of the future for this industry; The developing world.

Dr. Prash @ Real Big Things.
Dr. Prash P CEO, Caleb and Brown speaking @ Real Big Things.

Developing world markets have time and again demonstrated themselves to be fallible to dictatorial governments, frequent feudal power struggles, volatile economic structures and civil unrest, all of which contribute to an unstable economic landscape. While not limited to, a common result of this cocktail has been hyperinflation and a lack of faith from the populace in the national currency. As a recent case study, we can consider the case of Venezuela.

The Venezuelan Bolivar’s inflation rate reached 83,000% in July and is projected to hit an astronomical 1,000,000% by the end of 2018; figures which start to lose meaning after that many zeros. The real-life result of that is a populace that is desperately seeking a means to stabilise the value of their assets and savings that their own currency is no longer able to provide. The Sydney Morning Herald reports – Inflation desperation: Venezuela to cut five zeros from currency.

Enter Bitcoin. An asset class with a mathematically prescribed inflation schedule and finite supply that can never be hyperinflated. Bitcoin’s capacity to act as a store of value while also possessing the capacity to be a means of exchange has seen Venezuelans taking to the Cryptocurrency market to protect themselves from their own failing economy.

In addition, of what was it’s 32.4 million population in 2014, more than 2 million people have left the country since taking with them whatever assets they can. With the Venezuelan government banning its citizens from owning US Dollars (long considered the closest to a globally accepted currency), Venezuelans are instead investing in Cryptocurrencies as an asset that cannot be seized and functions across borders.

While this is a current example, the idea of developing world populations turning to alternative currencies than their own to stabilise their personal finances is not a new phenomenon. M-pesa, mobile phone credit that could be traded between individuals via rudimentary mobile phones saw widespread adoption throughout the African continent with Kanya leading the way. By the end of 2011, the M-Pesa network has 17million registered users. Over the course of 2014, the transactions in M-pesa for the year amounted to almost half the value of Kenya’s GDP.

It is with some humility that us in Developed World markets who sit and ruminate on the potential for Cryptocurrencies to act as a hedge against Fiat currency markets and ponder their potential in the case of destabilisation of financial markets, could take away some lessons from. A primitive decentralised economy is borne out of necessity and imagination which is replicating itself in unstable financial markets around the world.

The decisions of the SEC, major banks and regulators may decide the short to medium term uptake of Cryptocurrencies as well as the resultant market sentiment that drives immediate price movement. However, with the United Nations predicting that by 2030, 85% of the global population would be in developing world countries, we would be foolish to ignore the potential economic implications of a market that large and with such a viable use case for Cryptocurrencies.

Dr. Prash is the CEO at Caleb and Brown is available to guide new and seasoned investors.

About Dr. Prash P:
Prash is considered a thought leader in the philosophical and existential implications of this emerging technology and is a regular speaker at industry conferences.

connect with us

Call Dr. Prash on +61 1800 849 149  or Contact Us to discuss further.

Image source: Dynamic Business

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Crypto 101

Crypto 101 – Dr. Prash at Real Big Things #23

Doctor Prash returned to the Real Big Things stage to deliver a philosophical 101 on cryptocurrency. Bitcoin and Blockchain are terms being bandied around constantly but are possibly not fully understood by many so Prash walked the audience through crypto’s origins and the potential applications the technology might have in other areas of society.

10 Minutes is not enough to explain these complex concepts, but here is a break down of Crypto 101

Introduction

2008 was a disastrous year for financial markets around the world. The global financial crisis saw the Dow Jones fall more than 50% (in a matter of months?) while millions lost their homes and life savings.

It was against this backdrop of dissatisfaction with the financial services industry, that the Cryptocurrency industry was born. In October 2008, the mysterious ‘Satoshi Nakamoto’ published a whitepaper to an open tech mailing list entitled Bitcoin: A Peer-to-Peer Electronic Cash System. This was the first the world had ever heard of bitcoin.

1. Nakamoto’s Whitepaper – Blockchain Technology and Distributed Ledgers

2. Decentralization

3. Tokenisation and Smart Contracts

Blockchain movement, of which Cryptocurrencies are the most visible manifestation of, is powered by technology and philosophy in equal measure packaged into an inseparable entity and that is poetry.

Dr. Prash is the CEO at Caleb and Brown is available to guide new and seasoned investors.

About Dr. Prash P
Prash is considered a thought leader in the philosophical and existential implications of this emerging technology and is a regular speaker at industry conferences.

Call Dr. Prash on +61 1800 849 149  or Contact Us to discuss further.

connect with us

About Real Big Things:
Real Big Things is a series of short lectures designed to inspire and educate marketers about all things Digital. Each session includes a bunch of presentations about how different trends and technologies are changing the way we behave. We also provide freshly roasted coffee and delicious pastries.

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10,000 in Bitcoin Short volume added in 3 hours on Bitfinex

“Bitcoin Price – 2018” Macro Analysis by Jackson Zeng, COO Caleb and Brown

In the 2018 macro picture, bitcoin has been declining with consistently strong support at the $6000 mark. A couple weeks ago at the most recent drop, I went on Coincast TV on Sky News Business to assert my bullish position on bitcoin at $6200.

Since the low of $5850, Bitcoin has seen a recovery of 27% to $7430 over the last two weeks, in line with the sharp recoveries seen Feb 6, Apr 1, Jun 24, Aug 14. Year to date, there appears to be a roughly 30-day market attention period where price will recover after dropping to $6000.

Bitcoin-Price-6000

Following the descending trend line, we’re anticipating the price to not exceed $7600 before continuing the decline along the macro bear trend. And based on the short action Yesterday, it seems someone else has a similar idea.

Sunday between 4pm and 7pm, 10k BTC worth of shorts were accumulated on Bitfinex.

BTC Short

This is also compounded by an expectation that the CBOE ETF decision due Sep 30 will be delayed.

In conclusion, expect the negative price movement to return shortly and sit tight for the next market update where the market closes in on an impending breakout of the year-long trend.

Jackson Zeng, COO at Caleb and Brown, is available to guide new and seasoned investors.

About Jackson Zeng:
Jackson has five years of trading experience in the cryptocurrency space and founded Bit By Bit Capital, one of Australia’s first private trusts investing in cryptocurrency.

Expert view from other sources:

CNBC’s ‘Crypto Trader’ Predicts Bitcoin Shorts ‘Will Get REKT’ – On Sunday (2 September 2018, 20:19 UTC), Ran NeuNer, the host of CNBC’s “Crypto Trader”, said on Twitter that the $100 million in new Tether (USDT) reportedly sent to crypto exchange Bitfinex suggested that if the Bitcoin (BTC) price went up, the shorts would get “REKT.”

connect with us

Call Jackson on +61 1800 849 149  or Contact Us to discuss further.