Tesla has discontinued Bitcoin (BTC) to acquire its vehicles; chief executive Elon Musk has stated, quoting concerns about using fossil fuel for bitcoin mining.
Bitcoin, the world’s most prominent cryptocurrency, plunged more than 7 percent. This occurred following Musk’s Twitter post on Wednesday (local time) and was trading at $52,669.
Musk stated Tesla would not trade any bitcoin and plans to use bitcoin for transactions as soon as mining shifts to a more bearable energy source.
“We are also looking at other cryptocurrencies that use <1% of bitcoin’s energy/transaction,” Musk stated.
Musk announced in March Tesla customers can buy its electric vehicles with bitcoin.
The digital currency is created when high-powered rigs race against other computers to solve complex mathematical puzzles; this energy-intensive method relies on electricity produced with fossil fuels, especially coal.
Energy Vs. Mining
At current rates, such bitcoin “mining” swallows about the same amount of energy each year just like what the Netherlands made in 2019. The latest usable data from the University of Cambridge and the International Energy Agency shows.
“We are of course very concerned about the level of carbon dioxide emissions generated from bitcoin mining,” Ben Dear, chief of Osmosis Investment Management, a sustainable investor managing around $2.2 billion in assets that hold Tesla stock in several portfolios, announced.
Musk himself is a solid follower in cryptocurrencies but also an advocate of green technology. He stated that,
“Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment.”
In hypothesis, blockchain analysis firms state it is feasible to track the origin of bitcoin, suggesting the possibility that bitcoin could charge a premium for green bitcoin.
More robust climate change strategies by governments worldwide might also be better.
Some bitcoin advocates perceive that the current financial system – with its millions of workers and computers in air-conditioned offices – also uses large amounts of energy.
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