Last weekend we saw a massive correction of the bitcoin (BTC) rate. The altcoins were also hit hard and the entire market lost hundreds of billions of dollars in value in no time. The exact cause of the correction is not clear. However, recent accidents in Chinese coal mines are thought to have played a part.
As previously reported on LOUDLABS, there were three different incidents in Chinese mines. It involved gas explosions and floods that trapped 21 miners in the most recent accident. As a precaution, all coal-fired power stations in the region were shut down so that an extensive inspection could be carried out.
This subsequently caused many crypto miners in the region to run out of power. The computing power of the network, also known as the hash rate, went down and so did the bitcoin rate. Charles Hoskinson, Cardano (ADA) founder, showed again on Twitter yesterday that he sees no future for the Proof-of-Work (PoW) protocol, the protocol on which Bitcoin and a number of other cryptocurrencies run. He refers to the recent incidents in China.
Hoskinson often criticizes Bitcoin. In February this year, he said that “bitcoin will eventually die.” This could only be prevented if the network innovated. He further said at the time:
“Bitcoin is only valuable because it is valuable. It has no technological advantages. It is actually the least advanced of all cryptocurrencies, the least futuristic. There is no other reason than the fact that it exists. If the value plummets, nobody will mine it and you lose all your security. ”