Elon Musk, the CEO of Tesla, said that the company will again accept Bitcoin payments for its cars, provided that the majority of miners use renewable sources to run their farms.
“If there is confirmation of adequate (~50%) clean energy use by miners with a positive future trend, Tesla will again allow Bitcoin transactions,” Musk said in a tweet.
The company began accepting Bitcoin as a payment method for its vehicles earlier this year, but just weeks later it said it would discontinue the service due to the “environmental impact” of using Bitcoin.
Musk also refuted a statement by Sygnia CEO Magda Wierzycka, who claimed he used his position and influence to “manipulate”Bitcoin prices.
“Tesla has only sold ~10% of the holdings to confirm that BTC can be easily liquidated without moving the market”.
Bitcoin, Mining, and the Environment
Mining uses a massive computing system that solves millions of complex calculations per second to validate transactions on the Bitcoin network (a process known as “proof of work”). However, this requires massive amounts of energy for the maintenance, cooling and operation of the machines. But some say that since the sources of this energy are energy producers powered by coal and fossil fuels, it leaves a large carbon footprint for seemingly little benefit to the world.
The above has become a PR issue for businesses, especially as carbon neutrality and environmental friendliness has become a big issue for businesses. But the alleged environmental impact of Bitcoin mining somehow goes against this initiative.
On the other hand, the miners say that most farms are powered by renewable energy sources – such as hydropower or wind. Then there’s El Salvador, a country that legalized Bitcoin as a currency last week and has laid out plans to mine bitcoin via geothermal energy produced by volcanoes.
Meanwhile, some miner groups have already joined forces to self-regulate and make the activity “greener”. Last month, leading North American miners, bitcoin firms and even Tesla CEO Elon Musk created the so-called “Bitcoin Mining Council,” a consortium of stakeholders with one goal:
To use renewable or waste energy sources to mine Bitcoin and theoretically reduce the alleged climate problem.
“Potentially promising,” Musk tweeted at the time in this context. But for now, the criticism continues.
Text credit: cryptoslate