Elon Musk has long been the most high-profile advocate of Bitcoin. His ardent support for the cryptocurrency has done a lot in shifting public perception in favor of Bitcoin and strengthening the asset’s legitimacy in global marketplaces. Bitcoin owes a lot to Musk for its recent boom and soaring prices, as the cryptocurrency became popular thanks in no small part to the Tesla CEO’s decision to buy $ 1.5 billion in Bitcoin through the electric car company and accept the currency as a valid method , Payment is getting into the mainstream.
This risky move was just the beginning of a month-long roller coaster ride of dramatic events and market turmoil for Musk, Tesla and Bitcoin. First, the bold purchase and very public endorsement of a very volatile cryptocurrency Tesla’s investors put off on a large scale. On the heels of buying Bitcoin, Tesla’s previously skyrocketing share prices fell dramatically, making the company negative for the year in February.
“This withdrawal really began after Tesla made the decision to buy $ 1.5 billion worth of Bitcoin,” Garrett Nelson of New York investment research firm CFRA was quoted as saying Market observation back then. “Although Tesla used a relatively small percentage of its total cash on the purchase, investors are questioning its future growth strategy.” While the Bitcoin purchase paid off for Tesla in the short term – in the amount of approx $ 1 billion in paper profits – the move linked Tesla’s stock prices to the value of Bitcoin, both of which took a nosedive shortly afterwards.
Then, just last month, Musk made a full 180 for its longstanding loyalty to Bitcoin. The Tesla boss announced that the electric vehicle manufacturer no longer accepts Bitcoin as a means of payment. The reason Musk cited had nothing to do with the notorious volatility of the cryptocurrency or the cold feet of its investors, but instead focused on the significant and growing negative environmental effects of Bitcoin.
Related: High oil prices prepare super majors for a promising earnings season
The announcement was made against the background of increasing control and criticism of the massive energy consumption of the cryptocurrency and the growing carbon footprint. Among the vocal critics of Bitcoin and the threat it poses to the fight against global warming is none other than the really, really rich and influential tech guy Bill Gates. “Bitcoin uses more electricity per transaction than any other method known to man,” Gates said was quoted by the New York Times back in April, a few weeks before Musk’s U-turn, as part of a high-profile takedown of the crypto asset.
In fact, Bitcoin uses more energy each year than many entire countries. At 112.57 terawatt hours per year, Bitcoin Ranks between the Netherlands (110.68 terawatt hours per year) and the United Arab Emirates (119.45 terawatt hours per year). Overall, Bitcoin miners represent a whopping 0.52% of total world consumption.
As part of Musk’s newly discovered environmental priorities, he got involved in putting one together completely toothless Bitcoin mining advice who, after a meeting between prominent North American Bitcoin miners and Musk, set themselves the task of improving the sustainability of the cryptocurrency. The Council advocates more transparency in energy consumption and is committed to encouraging miners to switch to renewable energy sources. Of course, the whole idea of giving recommendations and guidelines to a group of people whose only unifying values are decentralization, autonomy and anonymity will be like keeping anarchist cats at its center. All that means: good luck with it.
After all, Musk just threw more weight behind the imperative this week with far more incentive and announced (on Twitter – where else?) That Tesla will start accepting Bitcoin payments again as soon as the cryptocurrency is at an approximate minimum of. running 50% clean energy. The Bitcoin share experienced a significant upturn immediately afterwards.
Bitcoin and Musk are off again and again as to whether or not they will enjoy their romance more ups and downs and public volatility for the foreseeable future, so stay tuned. Or, instead, turn your attention to the greener and even more absurd Muskian protégé Dogecoin, now available on an absurd twitter thread near you.
By Haley Zaremba for Oil Genealogie
More top readings from Oileli: