The reason Tesla suspended its support for vehicle purchases using BTC was concerns about the company’s “rapidly increasing use of fossil fuels for bitcoin mining and transactions, particularly coal”. Seems appropriate for a company developing an electric car, right?
First of all, the question is whether BTC is a Waste of energy This is not new and has been debated by industry experts for some time already. Meanwhile, the mainstream media – New York Times, Financial Times and Bloomberg, to name a few – walked out with Headlines After Musk’s comments, blaming Crypto for giant Energy Use. They Referred to Up to Cambridge University’s Bitcoin Electricity Consumption Index, where the total electricity used by bitcoin miners worldwide is currently around 113 terawatt-hours per year. But what they failed to mention – intentionally or unknowingly – is this latest study by the Cambridge Center for Alternative Finance Having said 39% of all energy consumption used in BTC mining was from renewable sources.
More interesting, Galaxy Digital Published a report Title & ldquo; On bitcoin & rsquo; Energy consumption: a quantitative approach to a subjective question, & rdquo; Where the company estimates the energy consumption of the traditional finance sector will be around 260 terawatt-hours per year, more than double that of the bitcoin industry. However, the estimate only comes from the available data, which means that it would be fair to say that the actual number is much higher.
Another important note is that after Kovid-19 Outbreak And the tremendous shift towards digitization globally, we must place the crypto energy consumption problem in the broader context of Internet usage. As Media Director Travis Nichols of Greenpeace USA Told:
“As web services grow and become more complex, the demand for computing power will continue to grow over the next few years and will require more energy.& nbsp;
In addition, billionaire investor and Dallas Mavericks owner Mark Cuban decided not to withdraw support for bitcoin payments, Debate with Elon Musko:
“We know that converting gold into a storehouse of value will help the environment. […] The society and the environment will benefit from large banks and decreasing use of coins. “
If we go back to Musk’s allegations against bitcoin, he negatively affected the industry. For example, New York State would have an eco-centric bill Extend three years On crypto mining if it passes the state senate. But there is a silver lining in every cloud, as they say. The good thing is that by focusing on the carbon footprint created by the crypto industry, space can move more quickly towards sustainability, because Happened with the global epidemic, Which forced governments globally to work on green energy among COVID-19.
Cointegraph reached out to experts in the crypto and blockchain industry for their opinions on the following questions: How do all these comments from Elon Musk affect the entire crypto space?