Speaking during the Squawk Box show on CNBC, Issacs acknowledged that despite bitcoin’s ability to decentralize the financial sector, the regulatory threat and environmental impact pose a great risk to the asset’s future growth. His sentiments come after bitcoin plunged over the weekend in the wake of reports U.S. regulators plan to take action on institutions using the asset to launder money. Issacs noted that the development is a hint of what to expect.
Concerns over bitcoin’s impact on environment
He further termed bitcoin mining energy usage as a threat to the environment amid the climate change debate. The advisor views bitcoin as a dirty asset. According to Isaacs: For years, crypto critics have slammed bitcoin for the high energy consumption stating it’s a threat to the environment. However, proponents believe the emergence of renewable energy sources will end bitcoin’s power consumption debate. Currently, large-scale bitcoin mining is done in parts of China where electricity is cheap. Over the weekend, bitcoin dropped 8.77% due to a decline in the bitcoin mining hash rate after reports that the Chinese government instituted blackouts. The blackouts in the NorthWest region of China emerged due to routine maintenance. By press time, bitcoin was trading at $55,794. On April 14, 2021, the asset surged to a new all-time of almost $65,000 in the wake of crypto exchange Coinbase going public on Nasdaq. [binance]
