Tesla and Bitcoin: 7 reasons why Elon Musk is wrong

Tesla and Bitcoin: 7 reasons why Elon Musk is wrong - 75ff4cb29457199748432afe5edd9c8bYesterday May 13, Elon Musk said via Twitter that Tesla will no longer accept Bitcoin payments (quotation BTC). According to Musk, Bitcoin mining goes against the environment, due to the high amounts of fossil fuels used, particularly coal.

After Musk's announcement, the price of BTC plummeted. However, the coin has since recovered slightly and is now trading around $ 50.000.

Loyal Bitcoin supporters have strongly criticized Musk's sharp turnaround, stating that the CEO is completely wrong on this issue. Here are the main reasons:

1. Bitcoin mining is adopting renewable energy

Anthony Pompliano, the founder of Morgan Creek Digital, responded to the news from Musk, stating that 75% of Bitcoin mining is done using renewable energy sources.

Pompliano's words could be based on a 2020 Cambridge University study that claimed 76% of BTC miners use electricity generated from renewable energy sources. 

2. Critics usually target China

Critics of Bitcoin mining usually base their arguments on China, where two-thirds of the electricity used to mine BTC comes from coal. Most of Tesla's sales are in the US and Europe, where mining comes primarily from renewable sources, so if Elon Musk was truly ethical, he should have banned the use of non-carbon-mined Bitcoin. environment and approve clean BTC.

3. Musk previously approved Bitcoin mining

Musk's recent decision to suspend BTC payments contradicts his previous position. On April 21, Musk endorsed a tweet from Square's Jack Dorsey stating that Bitcoin mining "incentivizes renewable energy." Has Musk changed his mind on the matter in less than a month?

4. No incremental energy is used in Bitcoin transactions

Musk's tweet alleged that Tesla stopped accepting payment in BTC due to the "increasing use of fossil fuels for Bitcoin mining and transactions." According to Michael Saylor, the argument was not credible because energy is only used in Bitcoin mining and not in BTC transactions.

5. Impact of Tesla vehicles on the environment

Tesla's CEO may also contradict himself when it comes to conserving the environment. Tesla vehicles powered by lithium batteries have begun to receive criticism for the enormous environmental damage that lithium mining does.

6. Gold mining and banking are not environmentally friendly

A story from 2019 also suggested that Bitcoin mining caused less damage to the environment than gold and banks. Gold mining and bitcoin both consume energy, but in the case of gold they also lead to direct environmental damage.

7. It is market manipulation

After Musk's tweet, many said he was manipulating the price of Bitcoin for his own gain. The main reason why regulators such as the SEC are reluctant to approve the cryptocurrency market are the fears of price manipulation. Musk's move could therefore tighten cryptocurrency laws.