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Why Tesla Has Stopped To Accept Bitcoin? Elon Musk And Cryptocurrencies Connection - YouTube
Channel: Insane Curiosity
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Elon Musk and Cryptocurrencies connection:
why Tesla as stopped to accept BitCoin?
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Elon musk was one of the most influential
person in the world according to Forbes last
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year.
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That is evident of the fires he fuels in the
world of cryptocurrency.
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Elon has always been a strong supporter of
Cryptocurrency and has been very vocal about
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it on his social media platforms.
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But a recent announcement made by Tesla and
Elon musk have shook the world of cryptocurrency
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by surprise.
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In message posted on Twitter, Elon Musk, Tesla’s
chief executive, said Tesla has suspended
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Vehicle purchases using Bitcoin due to environmental
and climate change concerns.
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Three months Earlier Tesla said that it would
begin accepting cryptocurrency Bitcoin as
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payment, but has abruptly changed its course
now.
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But this decision isn't out of the blue, the
decision taken by Tesla was carefully taken
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in regard with respect to the recent changes
in energy consumption in bitcoin mining.
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So, sit back and relax and we will explain
you the exact reason why Tesla stopped accepting
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Bitcoin and why it was necessary.
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Tesla announcement in march that it would
accept Bitcoin as a payment method was met
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with an outcry from some environmentalists
and investors.
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The electric car company had revealed that
it had purchased 1.5 billion dollars' worth
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of Bitcoin and Elon announced the company’s
plan to accept the currency.
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But on 13th of May, Musk wrote on twitter,
“We are concerned about rapidly increasing
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use of fossil fuels for Bitcoin mining and
transactions, especially coal, which has the
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worst emissions of any fuel, Cryptocurrency
is a good idea... but this cannot come at
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great cost to the environment.
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Tesla will not be selling any Bitcoin and
we intend to use it for transactions as soon
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as mining transitions to more sustainable
energy.”
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Bitcoin plunged by 17% after the announcement
sending the price of bitcoin under 50,000$.
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As cryptocurrencies are exploding in value,
the amount of energy being used in the mining
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is increasingly under scrutiny.
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Elon musk has always been a supporter of cryptocurrencies,
often tweeting about Bitcoin and the once-obscure
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Digital currency Dogecoin.
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His tweets in recent months have turned Dogecoin
into the world’s fourth biggest cryptocurrency.
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But since his announcement, a lot of people
have started making speculations that Tesla
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should have done a proper research in the
case prior to buying bitcoins.
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But that’s isn't the case, Tesla did a proper
research before making such a decision.
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Elon posted a picture of Energy consumption
trend over a period of last few months on
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his twitter.
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If we head to the Cambridge Bitcoin Electricity
Consumption website, we can see the Energy
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usage trend in the past few months has skyrocketed.
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If you look at the graph of energy consumption,
we see an insane rise in the energy consumption
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just after Tesla announced their purchase
of Bitcoin in February.
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We can clearly see a huge increase in annualised
terawatt hours of energy consumption for bitcoin
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mining.
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This is the critical factor as to why Tesla
made their decision to stop accepting payments
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in bitcoin.
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We have seen incidents of private power plants
that were left dead for years but were started
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again when the crypto boom came along, having
an enormous climate impact.
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. The best example is the Greenidge power
plant in upstate New York.
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The once-abandoned power plant was bought
by private equity firm Atlas Holdings and
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re-tasked.
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Now, Greenidge is on the verge of ramping
up its bitcoin ambitions.
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The plant’s smokestacks are increasingly
polluting the atmosphere in the service of
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bitcoin mining.
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Environmental groups and local residents are
confirmed about the plant’s footprint.
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There’s always been a debate about how much
energy is used in the production of cryptocurrencies.
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Bitcoin, in particular, uses as much energy
per year as the Netherlands.
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Its carbon footprint is supposed to be the
size of Singapore’s and it also generates
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as much electron waste as the country of Luxembourg.
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Bitcoin mining involves millions of computations
in kind of a lottery.
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But some cryptocurrencies like, Ethereum can
be created in less energy-intensive ways and
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can prove as a better environmental alternative
in the future.
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Bitcoin is a creature of fossil fuels, especially
coal.
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In the United States, miners are repurposing
obsolete facilities to supple the cheap power
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they cherish.
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That Bitcoin spreads a carbon footprint bigger
than Australia’s.
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The dominance of Chinese Bitcoin miners and
lack of motivation to switch from cheap fossil
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fuels to more expensive renewable energy sources
could mean there are few quick solutions to
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the emissions concerns over Bitcoin.
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So, after days of analysing everyone’s response
Tesla had to make a difficult choice of retreating
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from taking Bitcoin as a payment option.
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Their choice sent their stocks plunging for
about 17%.
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But it was a tough decision that had to be
made.
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Tesla investors also seemed happy after the
announcement.
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So, what do you guys think about the future
and potential of cryptocurrency?
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Will Tesla look for an alternative and if
yes what would it be?
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Let us know your thoughts and views in the
comment section below.
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