$425bn Wiped Off Crypto Market As Musk Says Bitcoin Is Bad For The Environment

Elon Musk has launched an announcement saying Tesla will not settle for Bitcoin as fee for its electrical automobiles. The agency stated the choice was primarily based on the rising use of coal in Bitcoin mining.

“We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emmissions of any fuel.”

This coincided with a pointy decline within the whole crypto market cap, which noticed $425bn wiped from valuations earlier than bottoming at $2.06 trillion within the early hours (UTC). Bitcoin is down 10.5% within the final 24-hours.

The timing and general message have drawn confusion, resulting in calls to publicize the supply, which claims rising coal utilization in BTC mining.

In flip, some have known as this hypocritical, as mining uncommon earth metals, within the manufacturing of lithium-ion batteries has a massively damaging affect on the surroundings.

The Bitcoin Energy Myth Was Disproven Already

Tesla’s $1.5 billion Bitcoin buy in February was an enormous enhance for the cryptocurrency business. The agency additionally introduced it might later start accepting BTC as fee for its automobiles, which it carried out a month or so later.

Although accepting BTC for Tesla got here with several issues, for instance, tax implications, the transfer was nonetheless seen as a step ahead in cryptocurrency adoption.

Based on environmental considerations, Tesla has now withdrawn the choice to purchase utilizing Bitcoin. They went on to say they received’t be promoting any Bitcoin and intend to make use of it as soon as a greener supply of power is carried out.

Interestingly, the agency additionally revealed it was taking a look at different, much less intensive cryptocurrencies. Whether that’s for a fee choice or treasury asset is unknown at the moment.

“Tesla will not be selling any Bitcoin and we intend to use it transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.”

In response, Bitcoin-bull Anthony Pompliano identified that almost all of miners use renewable power.

Elon … you understand that 75% of miners use renewable power, proper? This power story has been debunked over and over.

The cause for that is easy economics. Hydroelectric energy is the cheapest source of electrical energy, and cost-conscious miners are likely to flock to whichever location can supply low-cost electrical energy.

Lithium-Ion Batteries Are Harmful To The Environment

Tailpipe emissions from electrical vehicles certainly are zero. However, the environmental affect of electrical automobiles is felt additional up the chain.

In an article titled, “Lithium Batteries’ Dirty Secret: Manufacturing Them Leaves Massive Carbon Footprint,” the authors declare that making lithium-ion batteries may emit 74% extra CO2 than making a regular combustion automobile.

As effectively as that, there may be the destruction and contamination of pure water methods that come from mining earth metals, not forgetting the ensuing displacement of indigenous individuals.

The Head of the Asia Research Division of the German assume tank SWP, Günther Hilpert, stated the mining for uncommon earth parts is a extremely damaging and wasteful exercise.

“Securing just one ton of rare earth elements produces 2,000 tons of toxic waste, and has devastated large regions of China.”

Bitcoin does have an surroundings by way of excessive power consumption. However, most miners are utilizing renewable sources. At the identical time, manufacturing EVs shouldn’t be saving the planet.

Source: BTCUSD on TradingView.com

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