The warning, in a new Treasury report assessing the risk of the so-called DeFi markets, lays the foundation for tougher regulations and punitive action by federal agencies. Forbes senior contributor Clem Chambers, who regularly writes about the cryptocurrency markets, said 2022 was bitcoin’s Wile E. Coyote moment — likening it to the cartoon character with a penchant for falling off cliffs. Copyright ©2023 Dow Jones More information Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8 Cryptocurrency prices are reflective of the current supply and demand trends for that digital asset. If buying pressure in the market outweighs selling pressure, the price will rise. Similarly, when sellers outnumber buyers, the price falls. Bitcoin and other early blockchains use a technology where you have to prove that you solved a very hard computational problem to record transactions securely. And solving those computational problems is taking up absurd amounts of energy. Newer blockchains use much less energy-intensive ways of validating transactions. And so, my guess and hope is that the way we’re going to get away from environmentally harmful cryptocurrency transactions is through continual improvements in the technology, alongside regulation and market forces pushing toward technologies that are much more efficient.