What if the world was hit by another major disaster, but this time, it included a global power failure? Would Bitcoin (BTC) survive, would it prosper, what about the banks? We have the answers.
Bitcoin consumes massive amounts of electricity and with the constant growth of the network, this number will only increase. The Bitcoin protocol is based on the Internet for communication. Therefore, if suddenly, if there was an interruption in the world’s power grids, one could conclude that this would condemn crypto money.
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Bitcoin does not need the Internet
However, Andreas Antonopoulos does not agree. He believes that
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decentralized nature, combined with its ability to rely on alternative modes of communication, would prove far more resilient than the traditional banking system:
„In fact, I would predict that if we had a massive power failure or a natural disaster that damaged infrastructure like the Internet or the power grid, Bitcoin would be one of the first things to come back. And the reason for that is that Bitcoin is not only a self-financing system, but also because of the decentralization of users, node operators and miners who would have many, many incentives to rebuild local infrastructure in a very decentralized way. Remember that Bitcoin does not need the Internet to exchange transactions and blocks.
In addition, Antonopoulos points out that Bitcoin could rely on satellites, radio or telephone lines for communication instead. In his opinion, Bitcoin would be the first to recover. While for the global financial system to recover itself in a world without reliable electricity grids, that would probably take months, if not years.
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Governments can destroy the price, not Bitcoin
Antonopoulos believes that political attacks present a much more imminent danger to Bitcoin, especially „poaching“:
„I am concerned about political attacks, especially poaching, such as changing the fiscal status of cryptomoney to drive it underground. And I think such a tax could alienate a large part of the middle class and speculative investors who will not risk opposing the government to use Bitcoin.“
However, he concludes that while this would affect the price and make adoption difficult, it would not destroy the „system:
„Price can be attacked in many different ways. And those attacks can bring the price down quite dramatically and perhaps even over long periods of time. But they will not change either the monetary fundamentals or the technical functioning of the network.“
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Bitcoin has long proven that its system is robust. In 11 years of operation, the network has had no downtime.