Howestreet.com - the source for market opinions

ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

June 10, 2021 | Criminals and Climate Intensify Focus on Cryptocurrencies

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

Each story of criminals using cryptocurrencies to facilitate their activities intensifies the efforts of governments and businesses to stop them.  The US Congress is now considering legislation to ban companies from paying ransoms to reduce the leverage of cybercriminals in exacting payments.  This week, the Chinese Police Arrested 1,100 People for Money Laundering With Cryptocurrencies.

While global crypto mining is currently 75% concentrated in China, this is becoming less tolerable as extreme heat and air conditioning use intensify power shortages and force some factories to shut down GDP-driving production.  See Why China is cracking down on Bitcoin mining and what it could mean for other countries.  In Iran, blackouts and power shortages prompted the government to ban crypto mining on May 26.

As extreme heat and drought intensify globally, these issues are certain to escalate.  At the same time, greenhouse gas emission limits and carbon taxes will drive cities, states, provinces and countries to necessarily clamp down on counterproductive, energy-intensive activites.   When there is only so much emissions budget one can spend, food production, shelter, transportation and essential activities have to take precedence over energy for things like crypto mining.  Those who want to keep mining will need to find emission-free, renewable power sources or move to places that offer them.

This week, El Salvador’s president instructed the nation’s state-owned geothermal electric company to market facilities for cheap, renewable power to bitcoin miners.

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the HoweStreet.com Weekly Recap.

June 10th, 2021

Posted In: Juggling Dynamite

One Comment

Post a Comment:

Your email address will not be published.

All Comments are moderated before appearing on the site

*
*

This site uses Akismet to reduce spam. Learn how your comment data is processed.