Bitcoin has achieved the significant milestone that Elon Musk had been anticipating as a prerequisite for reinstating Bitcoin payments at the electric vehicle giant.
By Pradeep Saran
16 September 2023, 02:40 PM
Recent analysis reveals that Bitcoin has surpassed the threshold set by Elon Musk, potentially paving the way for Tesla to resume accepting the cryptocurrency as payment. The key factor is the composition of energy sources utilized by Bitcoin miners, with recent research from Bloomberg Intelligence indicating that over 50% of the energy used for Bitcoin mining now comes from sustainable sources.
In 2021, Tesla created significant waves in the crypto market by investing $1.5 billion in Bitcoin and expressing support for the cryptocurrency as a means of payment. Following this move, the price of Bitcoin soared to new heights, reaching $44,200. Currently, Tesla still holds more than 9,000 Bitcoins, valued at approximately $259 million, making it one of the largest public holders of Bitcoin worldwide.
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However, just three months after embracing Bitcoin, Elon Musk seemingly bowed to the criticism surrounding the cryptocurrency’s environmental impact. He announced that Tesla would suspend vehicle purchases made with Bitcoin, citing concerns about the increasing use of fossil fuels, particularly coal, for Bitcoin mining and transactions. Coal, known for its high emissions, raised significant environmental worries.
The energy makeup of Bitcoin mining has long been a contentious issue, with critics arguing that the network consumes energy equivalent to that of some small countries and relies heavily on fossil fuels, thus harming the environment. In contrast, Bitcoin proponents emphasize the network’s adaptability to various energy sources, highlighting its capacity to utilize stranded renewable energy. They also argue that the energy used to secure the decentralized monetary network serves a valuable purpose.
Elon Musk had previously indicated that Tesla would consider reinstating Bitcoin payments once the energy consumption by miners shifted towards being at least 50% sustainable. With the recent research suggesting that this threshold has been met, it remains to be seen whether Tesla will indeed reintroduce cryptocurrency as a payment option.
