The reason Tesla stopped supporting vehicle purchases with BTC was because of the company’s concerns about the rapidly increasing use of fossil fuels for bitcoin mining and transactions, especially coal. Sounds reasonable for a company that develops electric cars, doesn’t it?
First, the question of whether BTC is a waste of energy is not new and has been debated by industry experts for some time. Meanwhile, the mainstream media & mdash; The New York Times, the Financial Times and Bloomberg, to name a few & mdash; Following Musk’s comments, headlines began to appear blaming crypto for its enormous energy consumption. They related to the Bitcoin electricity consumption index of the University of Cambridge, in which the electricity consumed by Bitcoin miners worldwide is currently around 113 terawatt hours per year. But what they didn’t mention & mdash; intentionally or unintentionally & mdash; According to the latest study by the Cambridge Center for Alternative Finance, 39% of all energy used in BTC mining came from renewable sources.
Interestingly, Galaxy Digital released a report entitled “On Bitcoin’s Energy Use: A Quantitative Approach to a Subjective Question”. The company estimates the energy consumption of the traditional financial area at around 260 terawatt hours per year, more than twice as high as in the Bitcoin industry. However, the estimates came only from available data, which means the actual number is much higher.
Another important note is that after the outbreak of COVID-19 and the huge global shift towards digitization, we need to put the problem of crypto energy consumption in the broader context of internet usage. Travis Nichols, Media Director of Greenpeace USA, pointed out:
& ldquo; As web services grow and become more complex, the need for computing power will continue to increase over the next few years, and it will require much more energy. & rdquo; & nbsp;
Billionaire owner Mark Cuban of the Dallas Mavericks decided not to withdraw support for the Bitcoin payment, arguing with Elon Musk:
& ldquo; We know that replacing gold as a store of value helps the environment. […] The decline in the consumption of big banks and coins benefits society and the environment. & Rdquo;
If we get back to Musk’s allegations against Bitcoin, they have had a negative impact on the industry. For example, a green bill in New York state would impose a three-year moratorium on crypto mining if it passes the state Senate. But every cloud has a silver lining, as they say. What is good is that by paying attention to the carbon footprint of the crypto industry, the space can move faster towards sustainability, as was the case with the global pandemic that forced governments around the world to move on amid COVID-19 green energy to work.
Cointelegraph reached out to experts in the crypto and blockchain industry for their opinion on the following question: How are all of these comments from Elon Musk affecting the entire crypto space?