It looks like things are looking up once again for Bitcoin, as Elon Musk and Tesla are still open to supporting the cryptocurrency.
Elon Musk, Bitcoin Relationship Still Alive?
Musk, once the champion for Bitcoin, denounced his support for the largest cryptocurrency in the world recently after citing the negative ecological impact that BTC mining poses.
Initially accepting Bitcoin as payment for Tesla vehicles back in March, the price of Bitcoin shot up.
Then later in May, Musk announced on Twitter that they would no longer accept the cryptocurrency as a mode of payment because of environmental concerns. Tesla stated that they will continue to hold on to their reserve until more environment-friendly actions are taken by the cryptocurrency.
Musk expressed his belief that cryptocurrency has a promising future, but it cannot be at great cost to the environment, The Guardian reported.
Since then, Bitcoin investors have been frustrated with the CEO as he focused his attention on the meme cryptocurrency Dogecoin--with BTC stock and prices plummeting.
But now that Bitcoin is taking a "greener" approach, things might be patching up for the cryptocurrency, the EV company, and its CEO.
In a recent tweet, Musk said the automaker company will allow Bitcoin transactions when there's clean energy usage by the miners. He also mentioned how they sold off about 10 percent of their BTC to confirm that the cryptocurrency can still be liquidated easily without moving the market.
This is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.— Elon Musk (@elonmusk) June 13, 2021
When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.
Bitcoin Using Clean Energy?
Climate scientists have expressed concerns about the electricity used to mine bitcoin. Cnet explained that mining the currency requires high levels of computing power. The increase in cryptocurrency's popularity could create a demand for electricity that would generate carbon emissions.
To put things to scale, according to the Cambridge Bitcoin Electricity Consumption Index, the energy used to produce Bitcoin alone is equivalent to the annual carbon footprint of Argentina.
This has led to a series of government crackdowns on mining of the cryptocurrency in China, which plummeted the stock prices even further.
Now the move to renewable energy has set afoot.
At the end of May, Musk talked with the North American miners of the cryptocurrency to push for the planned renewable energy usage.
Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising.— Elon Musk (@elonmusk) May 24, 2021
Jack Dorsey, CEO of Twitter and Square, has been a big proponent of the cryptocurrency and has not wavered his support. Rather, he has been pushing forward for the use of green energy for Bitcoin mining.
He has also been one to push the narrative of Bitcoin incentivizing renewable energy.
Recently, Dorsey has also hinted about Twitter integrating Bitcoin's Lightning Network into the platform, giving hope to traders and investors that the tides would shift and the BTC value will rise back to a stable growth pattern.