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AI Predicts China Will Ban High-Energy Blockchains

May 8, 2024
in General
AI Predicts China Will Ban High-Energy Blockchains
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Ruholamin Haqshanas

Last updated:

May 8, 2024 07:48 EDT
| 1 min read

AI Predicts China Will Ban High-Energy Blockchains

China, known for its significant share of the global cryptocurrency mining industry, has been grappling with the environmental ramifications of its burgeoning blockchain sector. 

With concerns over carbon emissions and energy consumption on the rise, regulatory bodies are under pressure to address these issues.

In a bid to understand the future landscape of this burgeoning sector, we consulted three leading AI platforms—ChatGPT, Google Gemini, and Microsoft Copilot—to predict the fate of eco-friendly digital currencies, often termed “green cryptocurrencies.”

Regulations on Big Crypto Energy

The focus on sustainability has prompted governments worldwide to scrutinize the environmental impact of cryptocurrencies. 

Forthcoming regulations are expected to center on reducing the energy consumption of these technologies, with potential restrictions placed on high-energy blockchains. 

Green cryptocurrencies are those that utilize blockchain technology to ensure a significantly reduced carbon footprint. 

This is primarily achieved through the Proof of Stake (PoS) consensus mechanism, which requires far less energy than the traditional Proof of Work (PoW) system used by platforms like Bitcoin. 

Examples of green cryptocurrencies include Cardano, Algorand, and Tezos, which promise a more sustainable approach to digital transactions and asset management.

Bitcoin Price Prediction

Bitcoin, the first and most famous cryptocurrency, faces increasing scrutiny due to its significant energy demands and consequent carbon emissions. 

A single Bitcoin transaction consumes over 705 kWh of electricity, according to Digiconomist. This is enough to power an average U.S. household for about 60 days.

A single bitcoin transaction consumes more electricity than a US household in a month. A query on ChatGPT uses 10 times more electricity than a Google search. Moving all internet queries to AI will consume as much electricity as Ireland does in a year https://t.co/5pq6n1E9cZ

— Reveal IT Ireland (@RevealITIreland) April 4, 2024

While Bitcoin has shown resilience and adaptability, the increasing focus on green technologies might influence its price and the broader investor landscape, potentially driving a shift towards more sustainable alternatives.

China to Ban High-Energy Blockchains

On the global stage, the response to the crypto energy crisis varies. Countries like Sweden and Iceland have embraced green crypto mining thanks to their abundant renewable energy sources. 

Conversely, China, once a powerhouse in the crypto mining world, is predicted to implement a ban on high-energy blockchains in a decisive move to curb the environmental degradation linked to these activities.

This looming ban could set a precedent, urging other nations to consider similar restrictions or to adopt more sustainable practices in the cryptocurrency mining industry. 

The collective shift towards green crypto could redefine the economic and environmental landscape of digital finance, presenting a new paradigm where technology and sustainability are no longer at odds but are intertwined for global betterment.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : CryptoNews – https://cryptonews.com/news/ai-predicts-china-will-ban-high-energy-blockchains.htm

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