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Summary
- Last month, Elon Musk announced that Tesla would again accept bitcoin payments if mining were done via a reasonable 50% share of a renewable energy source.
- Right after his tweet, the Bitcoin prices rose by over 5% and hit near USD 40,000.
- The billionaire believes that cryptocurrency has a promising future, but cannot cost the environment.
Elon Musk is no less than a king of the Bitcoin world. His statements bring a storm of change in the industry. Be it his announcement that Tesla would accept Bitcoins as a mode of payment or his withdrawal from the same due to Bitcoin’s implications on climate change - Musk has had a significant influence on the Bitcoin market.
Here’s some backdrop on Bitcoin’s impact on climate change- the Bitcoin ecosystem is heavily resource-based. The computers that are used for Bitcoin mining run on high-power processors. These processors are highly energy-intensive. The biggest fear is that if Bitcoin mining increases, the global temperature would go beyond 2C within less than three decades.
GOOD READ: “Pied Piper”: the curious case of Elon Musk
Recent turns in Musk’s bitter-sweet relationship with Bitcoin
In May 2021, Musk withdrew his support from Bitcoin amid the rising climate change challenges led by Bitcoin mining. He then insisted miners rather depend upon renewable energy for mining as Bitcoin mining consumes a lot of energy.
The billionaire believes that cryptocurrency has a promising future, but it cannot be at a great cost to the environment.
After Musk’s last comment on the need for better dependency on renewables for Bitcoin mining, Bitcoin prices fell by a significant chunk. However, Musk’s recent statement again caused an influx in the Bitcoin market with sudden changes.
Copyright © 2021 Kalkine Media
- Last month, and for the first time, the Tesla CEO laid a map out for Bitcoin’s revival and entry as a mode of transaction once again for Tesla.
- In a tweet dated 13 June 2021, Musk announced that Tesla would again accept Bitcoin payments if mining were done via a reasonable 50% share of a renewable source of energy.
- He also affirmed that the resumption of Bitcoins as a mode of transaction for Tesla would only occur if miners stuck to renewable energy and show positive trends for the future.
- He also confirmed that Tesla had sold about 10% of its holdings to confirm that Bitcoin can be liquidated easily without moving the market.
ALSO READ: Elon Musk Calls for Renewable Energy Audits by Bitcoin Miners
Copyright © 2021 Kalkine Media
Musk’s recent statement brought another wave of activity in the Bitcoin world.
- Right after he tweeted that Tesla would start accepting Bitcoins once miners depend more on renewables, the Bitcoin prices rose by over 5%.
- The bitcoin price hit near USD 40,000 after Musk’s tweet.
On 1 July 2021, Musk tweeted in support of dogecoin by saying, ‘Release the Doge!’. Again, the Bitcoin price lifted slightly.
Sudden and abrupt price fluctuations in the Bitcoin market are of significant concern to investors and miners. Due to the frequent swings in Bitcoin price levels, market players have got split opinions. The Bitcoin world remains controversial for both investors and those concerned about climate change. Therefore, an early adaption to green technology would help the Bitcoin market flourish beyond imagination.
INTERESTING READ: Can Dogecoin Be A Bitcoin Alternative For Elon Musk’s Tesla?
