Bitcoin drops below $21k again and cryptographer says conventional banks consume 56 times more energy than BTC

Bitcoin price is currently hovering around $20.7k after a largely bearish day. The largest cryptocurrency by market capitalization is back below key resistance after a mildly bullish weekend. Altcoins were also bearish and took losses. More on that later.

In other news, a cryptographer has repeated his claims that the banking sector consumed 56 times more energy than the Bitcoin network and is therefore a much bigger polluter of the environment. In a recent interview, he discussed these statistics at length. More on that later.

US authorities have finally announced the conviction of a famous 2012 Bitcoin hack of the Silk Road platform. The Department of Justice has announced that prime suspect James Zhong has pleaded guilty to stealing more than 50,000 BTC from the platform. The US agency reportedly recovered the stolen crypto from Zhong’s residence last year. It remains to be seen how those affected will be compensated as Bitcoin has increased more than 50X since 2012.

Bitcoin price drops below $21k

Bitcoin dipped below $21k again earlier in the day as the bears moved in. The cryptocurrency now faces the difficult task of trying to revive its earlier rally.

In the last 24 hours, BTC started trading for around $21.3k. It had finished the weekend on a relatively high level and looked to extend or at least maintain the gains made at the end of the week. However, the price started to drop slightly towards midnight and was around $21.1k at that time. As soon as the clock struck 12, the cryptocurrency began to lose some value. It immediately went below $21k and found support at $20.9k. It traded sideways around $20.9k for a few hours before posting a half-hearted recovery to $21k at 03.00. The recovery proved short-lived and soon the price was back around $20.9k. It traded sideways at this level for a few hours before embarking on a price decline at 7:20. It steadily declined in value and found support at $20.65k. It has been trading sideways around this level ever since.

Bitcoin price drop below $21,000 poured cold water on immediate bullish hopes. While the decline in the dollar overall was not that big (-4%), it did what it was supposed to and now the bulls will start to experience psychological pressure as the week progresses. This is now the fourth time in recent weeks that the digital currency has failed to break above $21,000 and bounce back. The bulls need to make a price move and continue to do so until they are above $25k. Otherwise, the lack of progress will only revive the long-term bearish trend and the cryptocurrency may move back below $20k.

Bitcoin’s total market capitalization was around $397 billion and its share of the crypto market was 40.43%.

Bitcoin rate

Altcoins lose books

Other cryptocurrencies also had some losses during the day, with a few exceptions. Big losers were Ripple (XRP, -2.5%), Dogecoin (DOGE, -6.9%), Cardano (ADA, -3.25%), Solana (SOL, -6.7%), Shiba Inu ( SHIB, -5.9%), Tron (TRX, -2.5%), Avalanche (AVAX, -3.2%), Uniswap (UNI, -3.3%) and Cosmos (ATOM, -3%) . Polygon (MATIC, 8%) is preparing to enter the top 10 cryptocurrencies by market capitalization.

MATIC price chart

In other news….

Cryptograph repeats claims that the banking sector uses 56 times more energy than Bitcoin

Michel Khazzaka, a cryptographer and cybersecurity engineer, stands by his position when it comes to Bitcoin’s energy consumption compared to conventional banking.

Although it is well known that the banking sector is a major environmental polluter and has often been criticized for its lack of progress in this area, there is no clear way of knowing how much energy it consumes. There are only estimates, and they vary widely. The same is the case with Bitcoin, as some estimates place its energy consumption quite a bit higher, while others put it on a much lower basis.

The view that the banking sector consumes 56 times more energy is probably wrong, although the report caused quite a stir the summer after it was first published. The nature of the Bitcoin network is dynamic with the constant development of advanced miners that use less energy while the overall hash rate continues to increase.

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