ELON MUSK REFUSES TO ACCEPT BITCOIN AS MEDIUM OF EXCHANGE FOR EV TESLA VEHICLE

On Wednesday, the CEO of Tesla, Elon musk announced its decision from tesla to avoid accepting bitcoin as a medium of exchange for Electrical vehicles, Due to environmental concerns due to the rapid increase use of fossil fuels for bitcoin mining. According to Cambridge university, electricity usage spiked this year due to bitcoin usage of energy. After the Elon musk tweet on bitcoin, Bitcoin cost crept by 10 % including Tesla shares. 

ELON MUSK TWEET ON BITCOINS

‘Bitcoin’ is concerned about its rapidly increasing use of fossil fuels for bitcoin mining and transaction, especially coal, which are the worst emission of any fuel.

Cryptocurrency is a good idea on many levels and we believe it has a future, but this cannot come at a great cost to the environment.

Tesla will not be selling any bitcoin and we intend to use it for transition as soon as a mining transition to sustainable energy, we are looking at other cryptocurrencies that use <1% of the bitcoin energy transition. 

Elon musk concerned about environmental issues from Bitcoin

HOW BITCOIN ARE CREATED? 

Bitcoins are created by miners The blockchain, it’s a public ledger decentralized form of the ledger, which means they are not controlled by a single authority, it needs to be constantly updated by a network of computers around the world. Miners run various purposeful computers to solve complex puzzles to make transitions and miners who find the right answers to puzzle then blocks are added in blockchain with proper transition detail and miners are rewarded by block reward that includes bitcoins which should be given to him according to promise. 

Miners invest huge amounts of a penny in equipment to access them to solve puzzles. Bitcoin is created on the model known as ‘proof of work “  A promise is being rewarded with some bitcoin if you manage to solve its complex puzzle algorithm, Dogecoins are also created with the proof of work mechanism. As more miners are indulging in gambling which leads to network difficulty and it demands energy ( ELECTRICITY). Bitcoins are energy-intensive which is why the energy used by bitcoins is huge. 

DID BITCOINS AFFECTS THE ENVIRONMENT?

China produces 70 % of bitcoins, and it uses an unfathomable amount of energy. China’s economy is dependent upon coal. In China, the inner magnolia region has closed the cryptocurrencies mining due to huge energy consumption. 

Bitcoins consume 148.6 terawatt-hours of energy every year, according to the University of Cambridge center for attractive finance, which is equal to the energy consumption by Sweden, Pakistan, Malaysia, and 61 percent of Australian energy. Bitcoins are responsible for producing 50 megatons of co2 emissions every year according to a German research academic paper. 

Alexander also mentions that bitcoins raised environmental issues are manipulated because most of the transactions with the digital asset are not happening on the blockchain. It was done on secondary markets, centralized exchanges, they were never recorded on the blockchains. Along with Elon musk, Treasury secretary Janet Yellen warned that the digital coins is extremely efficient for making transaction and uses a ‘Strangling amount of power‘.