Sky News Australia shows that Cryptocurrencies such as Bitcoin have recorded stunning falls in value overnight as panic selling kicks into high gear.
Sky News contributor Peter Switzer said he had trouble explaining the rise and fall of Bitcoin and labelled it one of the "most speculative" forms of punting.
"I can see Bitcoin surviving all this but given the fact that China basically said they don’t want to deal with businesses that are using bitcoin," he said.
Bitcoin fell below the US$40,000 mark on Wednesday to a 3 month low. Prices of varius other digital coins also fell much. This happened after China imposed fresh restrictions on transactions involving cryptocurrencies.
It seems that the news from China caused Bitcoin to fall as low as US$38,514, for a 9% fall.
Bitcoin Price at May 21, 2021: 40,410 USD
The cryptocurrency fell nearly 40% from a record high of $64,895 hit on April 14.
It is also interesting that every industry has an "energy usage." Bitcoin's energy use is actually less than banking sectors and gold sectors. It is easy to criticize Bitcoin's energy usage, but these critiques are rarely used for other traditional industries.
It is interesting that energy usage analysis can be done in real time with resources such as the Cambridge Bitcoin Electricity Consumption Index. It shows rising energy usage beginning in late-2020, as bitcoin's price skyrocketed.
It is estimated that the global energy consumption of the banking system is 238.92 TWh per year.
See the full report about Bitcoin's energy use here:
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