The reason Tesla is suspending support for buying cars using BTC is the company’s concern about “Fast-rising use of fossil fuels for Bitcoin mining and transactions. Especially coal.” Sounds reasonable for a company that develops electric cars, doesn’t it?
First of all, the question of whether BTC is a waste of energy is not new. And it has been debated by industry experts for quite some time. meanwhile Mainstream media outlets such as The New York Times, Financial Times and Bloomberg have also made headlines following Musk’s comments, blaming crypto for its huge power consumption. They refer to the Cambridge University Bitcoin Electricity Index. The worldwide electricity consumed by Bitcoin miners is currently around 113 terawatt-hours per year. But what they didn’t mention — intentionally or unintentionally — is a recent study by the Cambridge Center for Alternative Finance, indicating that 39% of all energy used in BTC mining comes from renewable sources.
Even more interestingly, Galaxy Digital has published a report titled “About Bitcoin Energy Consumption: A Quantitative Approach to Subjective Questions,” where the company estimates the energy consumption of the traditional financial space to be around 260 terawatt-hours per year. more than twice the As big as the Bitcoin industry, however, estimates are based solely on available data. This means that it is fair to say that the real number is much higher.
Another important note is that after the COVID-19 outbreak and the massive global shift towards digitization. We have to put the issue of crypto power in the broader context of internet use, says Travis Nichols, Media Director at Greenpeace USA.
“As web services grow and become more complex, The demand for computing power will continue to increase over the next few years. and will require more energy.”
Additionally, Mark Cuban, billionaire investor and owner of Dallas Mavericks, decided not to withdraw his support for Bitcoin payments, arguing with Elon Musk:
“We know that replacing gold as a store of value can help the environment. […] The shrinking of big banks and the use of coins will benefit society and the environment.”
If we go back to Musk’s allegations against Bitcoin, they would have a negative impact on the industry. For example, an environmentally-focused bill in New York State would suspend crypto mining for three years if it passes the state Senate. But every cloud has a silver lining, as they say. The good thing is that by paying attention to the crypto industry’s carbon footprint, the space can move towards sustainability even faster. The same happens with pandemics around the world. This forces governments around the world to work on green energy amid COVID-19.
Cointelegraph Reach out to experts in the crypto and blockchain industry for their opinions on the following questions: How do these Elon Musk comments affect the entire crypto space?