Editor's note: Artificial intelligence ("AI") and cryptos are using more power than ever... According to Crypto Capital editor Eric Wade, these two disruptive technologies could spark a massive energy-supply crunch as they gradually consume more power moving forward. But as Eric details in today's Masters Series, adapted from the May Crypto Capital issue, this setup could lead to a huge moneymaking opportunity in the crypto space...
The 'Energy Supercycle' Will Transform Cryptos By Eric Wade, editor, Crypto Capital Most of us take energy for granted... We use it every day. And as a result, we like to think we understand how the energy market works. For example, gas prices tend to go up in the summer and down in the winter because more people travel during warmer months. And natural gas prices often rise in the winter as heating needs increase. These patterns are predictable... which creates a false sense of security. But a sudden shift in supply and demand could create a lot of volatility. Global energy consumption has skyrocketed over the past year. And it's expected to increase even more in the years ahead... which could push energy prices higher than we've ever seen before. We're about to see an "energy supercycle." When it begins, companies will have to compete for resources much more aggressively. And recently, one sector has already caused an explosion in energy demand... You might think I'm talking about crypto mining – but I'm not. True, bitcoin (BTC) is well known for using enormous amounts of energy. Millions of computers make quintillions of calculations to secure the network... all of which require power. In 2023, bitcoin used around the same amount of energy as the Netherlands. That's because bitcoin is a Proof-of-Work ("PoW") coin. Miners have to prove they did an extraordinary amount of work to earn a reward. It's one way to show transactions are authentic. Proof-of-Stake blockchains, on the other hand, don't require much energy to validate transactions and secure the chain. This is why bitcoin miners have become a target for environmentalists who claim that PoW is wasteful. But the crypto space still isn't the sector with the fastest-growing demand for energy. That crown goes to AI...
| Recommended Links: | |  Are We Reaching a Point of No Return? "With the way our elected leaders continue to spend recklessly with no end in sight, and without virtually any discussion of our mounting debt levels, I don't see this train slowing down anytime soon," says founder Porter Stansberry. Today, he's revealing how we'll know the exact day it'll all come crashing down... And the No. 1 step you need to take to protect and grow the value of your wealth as this crisis unfolds. Get the full details here. | |
 Is Gold Headed Above $3,000 per Ounce? Here's How to Play It... With so many strange events happening across the economy (the longest bear market for bonds since the Civil War... unprecedented bank closures... and soaring prices), it's no wonder the richest investors are loading up on gold. But what you might not realize is there's a much better way to profit from rising gold prices – WITHOUT ever touching an ETF, mining stock, or even bullion. Get the full details here. | | |
Regular DailyWealth readers know I expect AI to become a huge part of our everyday lives. We're already seeing more individuals, companies, and governments use AI (and crypto) to help run their systems, process transactions, store records, and plan major decisions. The potential uses are unlimited. That's why I think AI is going to be a big catalyst for cryptos going forward... For example, by using AI and the blockchain, doctors can quickly comb through patient records to come back with a personalized treatment plan. They can consider hundreds – maybe even thousands – of past cases to predict the best chance of a successful treatment. Meanwhile, companies like Merrill Lynch and Vanguard are using AI and the blockchain to run their clients' portfolios through hundreds of financial scenarios to test how well they'll hold up between now and the time their clients retire. In short, companies all over the world are finding ways to use these technologies. But AI requires an incredible amount of energy – even more than most cryptos. It has already been straining power grids in the U.S... Just look at northern Virginia's "Data Center Alley" for proof. Virginia-based Dominion Energy had to halt connections to new data centers for around three months in 2022 due to increased demand from AI. And AES, another Virginia-based energy company, told investors in May that because of AI's growth, data centers could make up 7.5% of total U.S. energy consumption by 2030. It's the same picture worldwide... The International Energy Agency projects global electricity demand to rise by nearly 25% by 2040, largely driven by AI and data centers. Meanwhile, supply is struggling to keep up. The supply of energy from fossil fuels is expected to peak before 2030. And renewable-energy sources aren't being developed fast enough to meet users' needs. This is a new imbalance of supply and demand. And it could push energy prices to levels we've never seen before. Cryptos, AI companies, manufacturing firms, electric-car companies, individual users, and payment-processing companies will all be competing for energy in the years ahead... As demand overtakes supply, companies may limit user transactions, prioritize critical operations over others, and have to implement shutdowns. This could lead to slower processing times, higher prices, and restricted access to services for customers. Eventually, the world won't have enough energy to go around... so investing in energy-efficient technologies will be essential. This is a problem that will need to be solved – and soon. Thankfully, crypto has a solution. One of our Crypto Capital recommendations is a blockchain that's designed to thrive no matter what happens in the energy market. It aims to use low amounts of energy while remaining decentralized, fast, cheap, secure, and scalable. I can't discuss all the details here in fairness to my subscribers. But as energy prices continue to rise, more folks will turn to this blockchain for help. The energy market just got a lot more complicated. That's going to create major challenges during the coming energy supercycle... and big upside potential, too. Good investing, Eric Wade
Editor's note: The crypto markets have been on a tear throughout 2024... and Eric believes we're still in the early stages of what's to come. That's why he just went on camera to walk through his No. 1 crypto trading strategy with his identical twin brother – and with you. He says this approach helped him uncover 12 stocks that have gone up 1,000%... Plus, he shared a list of cryptos that could help you earn between 5X and 10X your money. Click here to get the full details... | 
No comments:
Post a Comment