Market Watch

TrueNorthBit reports- OklaAnd Compass’s New Tool To Fight Mining Pollution

London, UK, 4th Oct 2021, – 

Why is everyone running after digital coins?

Crypto trading is quite popular amongst investors. Yet, many are still trying to figure out what is exactly and how they benefit from it. TrueNorthBit Broker Richard Walton explains that  Cryptocurrency is a type of digital currency that only exists in virtual form. It mainly serves as an alternative payment method, but it can also be traded for financial gains. These are sent and received using electronic addresses known as wallets which operate like virtual bank accounts. There are multiple advantages to investing in cryptocurrencies instead of the traditional stock market like:

1) Crypto Trading has little/no fees involved, unlike the stock market, where commissions shall be paid when trading shares. You do not incur any commission charges when you trade with cryptocurrency.

2) Crypto trading is open 24/7, unlike the stock market, where you have to go to a physical location like the stock exchange. You can do crypto trading on your computer or smartphone in your spare time.

3) The entire process takes place online using an account known as a wallet which stores your coins that can be accessed with private and public keys (password).  You can transfer money using these keys and ensure that no one has access to your account.

4) Crypto is a decentralized currency which means that no government can influence your money. Because they are not regulated by an authority, they cannot be confiscated from you under any circumstances as it takes place merely between peers.

5)  Crypto trading has low entry barriers. You can get started with less than $ 100, unlike the stock market, which requires you to have a big capital to start.

Is everything about cryptocurrency perfect?

Where there are many uses, crypto has a number of risks involved. One of the biggest risks is that hackers are always trying to steal your wallet’s private key so they can access your funds. It’s very important for you to take adequate precautions to protect your keys, or else all of your money would be compromised if it starts getting stolen by people who have ill intentions. Also, you must do research about the different cryptocurrencies available in the market and choose one based on their value, popularity, usability, etc. 

Apart from this, volatility in cryptocurrency prices is quite unpredictable, which makes it difficult to make any investment plans.  But this is what makes crypto trading so appealing to investors as they can expect a good amount of profits if all works well.

And lastly, cryptocurrency trading is less regulated than the stock market, which leads to the involvement of many fake brokers and schemes that try to steal your money without actually giving you any returns on investment (ROI). There are always multiple risks involved when it comes to financing- but one must understand that high risk also means high reward in this case. 

Environmental impact 

Environmental impact is another thing that should be considered while trading with cryptocurrencies.  Mining is the process by which new bitcoins are created. This needs massive amounts of electricity in order to run computers that solve complex math equations to create new coins.

This has led to companies building large-scale mining operations that consume huge amounts of electricity.  The legitimacy of trading with cryptocurrencies should also be assessed from an environmental standpoint as it involves a lot of energy consumption which would lead to the emission of greenhouse gases into the environment.

Modern Problems Require Modern Solutions

Lately, cryptos have faced a lot of criticism in this regard, and this is why now people are looking up to Nuclear Power as a relatively eco-friendly alternative. Oklo Inc. is a cryptocurrency mining firm. The representatives have revealed that the company will work with Bitcoin mining and hosting company Compass Mining to use more advanced fission to create new coins, which is energy-intensive in an attempt to reduce energy consumption and the net environmental loss. CEO Oklo says that he finds bitcoin a huge market for clean energy. According to the plans, the firm would provide around 150 megawatts of power in a period of 2 decades. 

Walton points out that environmental experts think this might not be the best step as it is just shifting one source of pollution to another. Nuclear energy generates large amounts of waste that are hard to discard. In his opinion, only well-researched and perfectly implemented planning can help us choose whether this is a good proposition or not. For now, the Okla-Compass deal is a breather of fresh air for the crypto world, which has been under fire for a while.

While environmental concerns are real, it can’t be denied that cryptocurrencies have led to a revolution in the financial sector and have given rise to new opportunities across various industries.

Disclaimer: Our content is intended to be used for informational purposes only.

It is very important to do your own research before making any investment based on your own personal circumstances.

You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.