Elon Musk’s statement in 2021 that Tesla would accept Bitcoin payments once miners were using roughly 50% clean energy sources “with positive future trend” may have recently been met. Bloomberg analyst Jamie Coutts reported on September 14 that the percentage of Bitcoin (BTC) mining energy coming from renewable sources had exceeded 50%. This milestone was achieved due to miners dispersing from China following the country’s mining ban and certain nations turning to mining to monetize stranded and excess energy.
Countries such as El Salvador, which has recognized Bitcoin as legal tender since 2021, Bhutan, Oman, and the United Arab Emirates are investing in Bitcoin mining. This achievement of the 50% energy benchmark could potentially lead to greater adoption by one of the world’s largest companies.
In May 2021, Musk, the CEO of Tesla, owner of X, and founder of SpaceX, announced that Tesla would stop accepting BTC payments due to concerns about the environmental impact of Bitcoin mining. Musk stated that the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions” was the reason behind this decision. However, Musk established a threshold of 50% sustainable energy sources for when Tesla would resume accepting Bitcoin payments. While acknowledging the positive trend toward green energy sources, Musk has not yet changed Tesla’s policy.
As of now, Musk has not publicly announced any move to resume BTC payments. The price of Bitcoin at the time of publication was $26,572, showing a rise of more than 2% in the last seven days.
It is worth noting that Bitcoin’s environmental impact has attracted significant attention and scrutiny. The cryptocurrency’s energy consumption and carbon footprint have raised concerns about its compatibility with global efforts to address climate change. However, Bitcoin and the crypto industry as a whole have also shown a growing commitment to transitioning to renewable energy sources. Projects and initiatives are underway to promote sustainable mining practices and reduce the carbon footprint of crypto operations.
The achievement of exceeding 50% renewable energy sources in Bitcoin mining is seen as a significant step towards sustainability in the industry. It not only addresses concerns about the environmental impact but also paves the way for wider acceptance and adoption of cryptocurrencies by major companies and institutions.
In conclusion, the recent report indicating that Bitcoin mining is now using more than 50% clean energy sources is a positive development for the crypto industry. It aligns with Elon Musk’s benchmark for Tesla to resume accepting Bitcoin payments and demonstrates progress towards sustainability in the sector. As more countries invest in Bitcoin mining and adopt renewable energy sources, the potential for mainstream adoption of cryptocurrencies continues to grow. However, it remains to be seen whether Elon Musk will officially announce the resumption of BTC payments for Tesla.
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