Crypto:
29881
Bitcoin:
$68.457
% 0.95
BTC Dominance:
%52.7
% 0.31
Market Cap:
$2.57 T
% 0.03
Fear & Greed:
75 / 100
Bitcoin:
$ 68.457
BTC Dominance:
% 52.7
Market Cap:
$2.57 T

What Will Elon Musk Do About Bitcoin?

What Will Elon Musk Do About Bitcoin? Despite frequent criticism due to its high energy consumption and carbon footprint, Bitcoin is transforming greater environmental sustainability, as highlighted in a recent report by Jamie Coutts, a cryptocurrency market analyst at Bloomberg.

According to Coutts, the use of renewable energy sources in Bitcoin mining has exceeded 50% for the first time, thanks to miners shifting to regions with less intensive fossil fuel usage and adopting more sustainable solutions such as off-grid power and gas flaring. This positive trend has led to a reduction in carbon emissions associated with Bitcoin mining, despite the increasing hash rate that measures miners’ computational power.

Coutts substantiates these claims by referencing data from Cambridge University, Coin Metrics, and climate technology expert Daniel Batten. He points out that following a more accurate assessment of ASIC machines used in the mining process, Cambridge University recently revised its estimate of Bitcoin’s 2022 electricity consumption from 105.3 terawatt-hours (TWh) to 95.5 TWh.

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Furthermore, Batten highlights shortcomings in the Cambridge model, which excluded new sustainable energy sources and significant geographical shifts over the past three years. The analyst predicts a 37.5% reduction in emissions from Bitcoin mining since the temporary drop in hash rate caused by China’s mining ban in mid-2021, even as the hash rate has rebounded and increased fourfold.

Coutts argues that the declining emissions and rising hash rate demonstrate a growing reliance on renewable energy sources within Bitcoin mining. He also suggests that Bitcoin mining could further support the transition away from coal for wind and solar energy, reducing associated costs: “What becomes even more apparent is that the transition away from coal for wind and solar often requires incentives and early suboptimal returns in the lifecycle of energy plants. Bitcoin mining, as a source of income from excess energy, can facilitate this transition.”

Elon Musk previously stated that Tesla would consider accepting BTC payments again 50% of the energy used in BTC mining comes from renewable sources. Musk’s statement was made in July 2021, when he mentioned:

“It looks like Bitcoin is shifting more towards renewable energy, especially with the closure of many heavy coal plants in China. I want to do a little more diligence to confirm that the percentage of renewable energy usage is most likely at or above 50% and that there is a trend towards increasing that number. If so, Tesla will most likely resume accepting Bitcoin.”

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