Crypto has come under major fire for its environmental concerns and damage in addition to criticisms from those who don’t believe in it. The effects are undeniable as climate scientists have estimated that if left to its own devices, demand for energy to power these mining operations could drive global warming 2°C higher in just two decades. Moreover, China’s National Development & Reform Commission has placed Bitcoin mining alongside a list of 450 other industrial activities earmarked for potential elimination (further proven by their actions of cracking down on mining centers).
Clearly, many countries around the world are not a fan. So how could crypto survive with all this criticism? Well, one man, namely Crypto billionaire Wu Jihan has recently flipped this notion of criticism being bad on its head and said that the pressure is “very healthy” for the industry.
Wu specifically mentioned this at the Asia Tech x Singapore conference, explaining: “I think that such kind of crackdown may be a good thing for the industry in long term,” – the reasoning behind this is that regulatory action weeds out bad actors while improving the reputation of the industry. Although some countries like China, and now increasingly the US lean in opposition to crypto, with the US’s own Federal Reserve Chair Jerome Powell calling cryptos “vehicles for speculation.” Other countries, such as Singapore, where Wu’s company “Matrixport” is headquartered, serves as a global financial center relatively open to new innovation in financial technology. What do you think about the criticism for the crypto industry? And do you think it is good for the industry overall?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.