• BlackRock not being overly bullish on bitcoin means that institutions are gradually getting onboard with the new age financial asset.
  • The decision may have been informed by concerns over the future stability of the U. S. dollar as the world’s reserve currency.
  • This trend in the form of increased adoption of ICOs can lead to adoption of cryptocurrencies in the conventional financial system.

BlackRock, the world’s largest asset manager, is preparing for a scenario with a U. S. dollar crisis by considering Bitcoin. This is so given the fact that world financial markets are being exposed to issues of inflation, geopolitics and fluctuating currency. The fact that BlackRock has taken a position in Bitcoin shows that more and more individuals regard cryptocurrencies as an insurance policy against economic uncertainties.

Bitcoin’s Flexibility in Energy Markets

One of the major reasons that proponents put forward in support of mainstream adoption of Bitcoin is the versatility of bitcoin in energy markets. As noted by Kennedy, the miners can flexibly balance the energy consumption depending on the rate fluctuation, a situation that could benefit the grid operators. The capacity to shut down during certain peak demand hours is still able to keep the grid stable while.

Blackrock Silently Preps For Dollar Crisis With Bitcoin | EP 1080 https://t.co/8R1tXvg0yw

— Simply Bitcoin (@SimplyBitcoinTV) September 20, 2024

Kennedy also noted that Bitcoin miners engage in demand response programs in which they are rewarded for using less electricity during peak hours. These programs act as important ‘tools’ to manage power systems especially at a time the world is embracing the use of renewable energy resources. Additionally, Bitcoin mining offers energy producers a consistent revenue stream when energy demand is low, further supporting renewable energy adoption.

Renewable Energy Adoption and Bitcoin Mining

According to Kennedy, there is a trend indicating that most of the miners are shifting to renewable energy especially in the state of Texas. And with more than half the Bitcoin network already powered by renewable energy, the asset manager’s involvement in Bitcoin could help improve the environmental sustainability of financial systems.

Read CRYPTONEWSLAND on google news

Moreover, bitcoin mining can be a substitute to more emitting natural gas peaker plants that are used during high electricity usage. In this case, Bitcoin mining is more environmentally friendly through the use of renewable energy and this resonates well with black rock’s investment plans.

disclaimer read more

Crypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.