Tesla Might Have to Bring Back Bitcoin Payment

 

The second quarter survey of the Bitcoin Mining Council has been announced. The survey showed that the electricity mix of the entire mining industry sustainability reached 59.5%.

Technology and Energy Usage

A 59.5% sustainability mix means it’s the 5th consecutive quarter when the Bitcoin power mix stood over 50%. Tesla put a halt on accepting Bitcoin in May 2021 on environmental grounds. The company said a consistent use of renewable energy for over half of Bitcoin mining is the condition to accept Bitcoin again.

Bitcoin mining has received a lot of backlash for energy consumption. Its proof-of-work, which is the consensus mechanism, is made to encourage competitiveness among miners. But data generated recently suggest the asset has made some progress.

Bitcoin’s mining council collates data from more than 50% of the general Bitcoin network. It stands as a relatively fair representation of the entire network.

The Bitcoin Mining Council shows that the mining sustainability power mix has improved. It grew by over 6% in 2021. The survey equally shows Bitcoin’s working efficiency to have improved by 46%.

MicroStrategy CEO who is equally a major BMC supporter, Michael Saylor, hailed the improvement. He expressed that he is proud of the technical improvement seen in the network. He said it is difficult to find any sector with that level of efficiency.

Fiats Might Be More Harmful to the Environment 

Bitcoin proponents have joined environmental debates to make certain claims. They say fiat monies have a more negative impact on the environment than Bitcoin. A Bitcoin analyst, Willy Woo, said Bitcoin mining merely scavenges on waste energy.

A report recently released has it that Tesla might strike its Bitcoin investment hard. An analyst with Barclays bank, Brian Johnson, says Bitcoin investments might take a $460 million hit. The company’s Bitcoin holdings will thereby dwindle greatly.

Tesla accumulated its Bitcoin holding at about $32,000 per coin. While at that, Bitcoin suffered its worst economic hit this year. This is primarily a result of interest rate increases from the Federal Reserve and inflation.

Not just Bitcoin though. The entire cryptocurrency market was not spared from the global crash. As a matter of fact, entire blockchain projects have collapsed due to the tumble.

While Tesla is considering its next move on cryptocurrencies, other entities are also reviewing their stance. Countries are considering how cryptocurrencies can benefit their economies with the proper regulation. 

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