Achilles' Heel of Crypto
While learning Crypto's I have been trying to understand risks of all types. Early on I knew that electricity and cheap electricity at that was crucial to not just mining but the entire Crypto network. Sure, the FinTech world also has these limitations too, so does every advanced nation on the globe. Okay, so no pro or con for this one risk.
Or is there a risk? Today I read an article that showed Venezuelan State is shutting off electricity to miners as they want to have deeper talks in / around deeper cooperation. Read what you want from that statement. Knowing how Dictators and Tyrants work, their form of 'cooperation' is more of give me what you have so I can have that too. The ole 'Good for me, not for thee' syndrome it is as old as the ages!
Getting back to my initial point in the event of a Global exchange of Isotope projectiles and all the systems comes down. To what extent is unknown?
However, in the event that market advantages are removed what are the incentives to strive and get ahead of the competition (in country and vs other country's?)
Crypto Miners by Country evaluation
China - allowing Crypto Miners access to Hydro power (ultra cheap) as China was to be able to dictate Global Crypto Framework.
USA - Investment legend has signed contracts for Natural Gas powered miners in West Texas, where he will immerse miners in mineral oil to keep the miners at a more consistent temperature and it allows higher GPU/CPU utilization rates too.
Iran - Allowing miners access to Nuclear power for ultra cheap power.
So how do you hedge against Power outages on a Country or Global level?
How long will your Hardware wallet properly keep your Crypto balances prior to needing/requiring an electric charge across all cells?
Summary - I know the world is a fragile place and the electricity allows us to live beyond the stone age. Not sure how well the house of cards holds up in a massive (global) power issue. I don't have the answers at this point only more questions.
Enjoy the Journey!
