Australian economist says Bitcoin's energy dependence is a key vulnerability

Australian economist Steve Keen has argued that Bitcoin's reliance on massive energy consumption for security is an unsustainable model, The Crypto Basic reported. He explained that Bitcoin's fundamental structure is not viable long-term, especially as global pressure mounts to reduce energy use. Keen suggested that as governments address climate and resource challenges, high-energy systems like Bitcoin could face increasing regulatory scrutiny. Beyond environmental concerns, Keen highlighted that geopolitical uncertainty amplifies Bitcoin's vulnerability. He pointed to potential global crises, such as the conflict between the U.S. and Iran, which could disrupt energy supplies. In such scenarios, governments would likely prioritize allocating energy to essential sectors like food production and heating, potentially restricting or deprioritizing energy-intensive networks like Bitcoin, he noted. Keen is credited with having predicted the 2008 global financial crisis.