![\"A](\"https:\/\/cdn-dfpai.nitrocdn.com\/gJsEsVaCFesDAEYOdjncMdcuJdoeUsXv\/assets\/static\/optimized\/rev-cf7bc54\/wp-content\/uploads\/2021\/10\/Good-luck-with-that-coin-16_9.jpg\")
Image source: Getty Images<\/p>\n<\/figcaption><\/div>\n
The price of Bitcoin <\/strong>(CRYPTO: BTC<\/a>) is treading near its lowest level in the past 12 months. After failing to continue its rebound in August, demand for the weathered crypto asset has waned.<\/p>\n Today, Bitcoin<\/a> is hovering around US$18,780, down a gut-wrenching 73% from its 52-week high. The harrowing fall has coincided with monetary tightening by central banks around the world. As a result, liquidity for this alternative has evaporated right in front of our eyes. <\/p>\n At the same time, greater scrutiny around proof-of-work (PoW) \u2014 Bitcoin\u2019s consensus mechanism \u2014 has increased awareness of Ethereum<\/strong> (CRYPTO: ETH<\/a>) and its recently adopted proof-of-stake (PoS) mechanism. The Ethereum network now uses approximately 99.95% less energy post-merge. <\/p>\n But here\u2019s why I continue to hold Bitcoin\u2026 and no, I don\u2019t hate the environment. <\/p>\n We have all seen them, the comparisons of Bitcoin\u2019s network energy consumption relative to whole countries. <\/p>\n According to estimates<\/a> by the University of Cambridge, the network is currently operating on annualised energy consumption of approximately 93 terawatt-hours (TWh). This would put the decentralised blockchain\u2019s consumption roughly on par with all of Pakistan. <\/p>\n Though, I personally don\u2019t consider this a negative if there is something of a corresponding value from it. In this case, the value proposition is a highly secure, immutable, and deflationary form of monetary exchange. <\/p>\n For context, YouTube demands around 244 TWh per year \u2014 pictured below \u2014 and no one bats an eye. Why is this? Because instant access to a library of content at your fingertips has value\u2026 immense<\/em> value. <\/p>\n In the same way, I believe there is a huge need for a means of exchange that is governed by a decentralised cohort, accessible globally, and eliminates the inequality-inducing economic problem of inflation<\/a>. <\/p>\n But why not Ethereum? And I agree, Ethereum has great value in its own right \u2014 bringing decentralisation to all forms of finances. However, in the process of converting to PoS, I personally believe the network removed an important tangible aspect. <\/p>\n To be fair, Ethereum has implemented some highly sophisticated tech that should<\/em> maintain network security. However, there is something to be said for a network \u2014 such as Bitcoin\u2019s \u2014 that is reliant on something that cannot be imitated, created, or destroyed\u2026 real and tangible energy. <\/p>\n I\u2019m still in the process of understanding all the intricacies of Ethereum 2.0. <\/p>\n Speaking of intricacies\u2026 another reason why I personally still hold Bitcoin is because of its relatively straightforward concept. As my engineering days taught me: the more parts, the more points of failure. <\/p>\n While Ethereum quite honestly needs to be complex to achieve its goal, a decentralised store of value doesn\u2019t need to be. And, quite frankly, if I\u2019m keeping a large sum of money there, I don\u2019t want it to be either. <\/p>\n Each time a protocol undergoes a change, it presents a risk. Thankfully, Ethereum successfully completed \u2018The Merge\u2019 unscathed, but there were likely a few people sweating in the process. <\/p>\n In contrast, Bitcoin rarely makes substantial changes to its foundational code. Personally, this is another reason why I like it as an alternative store of value. It may not be as \u2018smart\u2019 as Ethereum, but it sure is reliable. <\/p>\n<\/p><\/div>\nWhy I still see value in Bitcoin <\/h2>\n
![\"\"](\"https:\/\/cdn-dfpai.nitrocdn.com\/gJsEsVaCFesDAEYOdjncMdcuJdoeUsXv\/assets\/static\/optimized\/rev-cf7bc54\/wp-content\/uploads\/2022\/09\/image-2-368x337.png\")
Simple and stable<\/h2>\n