Friday, December 8, 2023

Rising Omicron COVID-19 Cases And Environment Concerns Pushing Back Cryptocurrencies

Environmental, social, and governance as well as investing and concerns over energy use has been a catalyst in recent crypto market declines, says Lou Kerner, partner at Blockchain Co-investors. Kerner said the proof of work from the crypto mining machines is looked at negatively by the investment community. This is because of the amount of energy it consumes.

But the executive argues that the power it consumes couldn’t be used for anything else. Kerner believes that the issue of energy is small in the context of the massive value of cryptocurrency.

And then there are the institutional investors. Kerner said institutional investors of different companies have grasped cryptocurrencies. They are trying to fathom the crypto market. However, the executive acknowledged that it’s still hard for most investors to get their heads around crypto mining. Kerner pointed out that even though mining is very much a part of the industry, investors don’t give it time. They tend to overlook.

Brian Kelly, CEO, and founder of BKCM, says the post-Christmas decline of bitcoin is attributed to the omicron variant of the ongoing coronavirus pandemic. He said a lot of macro funds that use BTC as a pro-cyclical inflation hedge have decided to take profits throughout December.

Graham Jenkin, CEO of CoinList, believes bitcoin is going to be a pretty superior asset to invest in. And Walid Koudmani, an analyst at XTB Market, is very much hopeful about crypto prices recovering soon. He pointed out that the decline could deter new or inexperienced investors.

But Koudmani highlighted that the mass adoption of cryptocurrencies and blockchain technology as a whole is a plus. It has boosted the crypto market and generated interest and confidence. This has pulled in institutional investors and lawmakers alike. He believes that now, the retail investors have to catch up.

Cryptured Team
Cryptured Team
The writers team at is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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