In 2021, Tesla halted Bitcoin payments due to environmental concerns. While reports suggest increased adoption of renewable energy in Bitcoin mining, Tesla hasn't reintroduced the option.
Tesla and Bitcoin have had a tumultuous relationship, primarily driven by environmental sustainability concerns. With the rise of green Bitcoin mining practices, many are wondering if Tesla will reconsider accepting Bitcoin payments.
Back in February 2021, Tesla embraced Bitcoin with a $1.5 billion investment and accepted it for car purchases. However, by May of the same year, environmental worries, particularly surrounding coal-powered mining, led to the suspension of Bitcoin payments by Tesla.
Elon Musk, Tesla's CEO, had previously stated a 50% minimum threshold for renewable energy usage in Bitcoin mining as a condition for resuming transactions. Although reports claim this threshold has been surpassed (over 55%), Tesla remains silent on the matter.
Transparency and verification of energy data in Bitcoin mining are concerns raised by Alex de Vries, a data analyst. Upcoming regulations like MiCA might expose these issues further.
The methodology used to calculate Bitcoin mining's energy consumption varies, leading to discrepancies. The Bitcoin Mining Council (BMC) reports 59.9% sustainable energy use, while the Cambridge Centre for Alternative Finance (CCAF) offers a more conservative estimate. This highlights the challenge of obtaining reliable data.
The geographical shift of Bitcoin mining, particularly after China's crackdown on coal-based operations, has driven the US to become a major player. However, regulatory uncertainties still cloud the industry and Tesla's decision-making.
Despite reported progress in green Bitcoin mining, Tesla's silence on resuming Bitcoin payments is deafening. Data reliability concerns and potential public backlash could be factors holding Musk back. This creates a wait-and-see approach for the entire cryptocurrency market, with investors, including those interested in Toncoin (TON) price movements, watching Tesla's decision closely.
