After bitcoin has risen to a record level after Tesla's electric automobile industry invested $ 1.5 billion in currency
Announcing that it may accept payments in bitcoin soon, critics question Tesla's investment in bitcoin and it conflicts with the company's position on environmental support.
MICHAEL RAUSCH, A RESEARCHER AT THE CAMBRIDGE CENTER FOR ALTERNATIVE FINANCE, WHO CO-CREATED THE TOOL THAT GENERATES ESTIMATES OF ENERGY CONSUMPTION FOR CRYPTOCURRENCIES.
“By mining Bitcoin consumes a lot of electricity and this is not something that will change in the future unless the bitcoin price drops significantly.”
On the contrary, the researchers say Bitcoin is one of a large subset of very high energy consumption.
BITCOIN MINING CARBON FOOTPRINT
Bitcoin “mining” involves the use of often specialized servers to connect to the blockchain network of the cryptocurrency industry.
These servers are mandated to verify transactions by people who send or receive Bitcoin.
The process involves solving puzzles that act as a buffer for anyone attempting fraudulently to alter the global Bitcoin transaction history
Bitcoin miners are rewarded by receiving small amounts of bitcoin sometimes in a feature that often resembles a lottery.
Bitcoin miners often fill their entire repositories with bitcoin mining hardware
This results in a very large energy consumption estimated at about 22 megatons of CO2 emissions per year
This can be compared to the total emissions produced in Las Vegas.
The Cambridge University tool predicts based on the economic age of bitcoin mining machines and assumes that all bitcoin mining machines around the world are operating at different efficiencies.
And it expects that the average price of electricity per kilowatt-hour for Bitcoin mining is estimated at ($ 0.05).
ENVIRONMENTAL INVESTMENT AND SUBSIDIES
After Tesla invested $ 1.5 billion in bitcoin, commentators said they were surprised by the investment's effects: David Gerrard, author of Attack of the 50 Foot Blockchain, said:
Tesla received $ 1.5 billion in environmental subsidies in 2020, funded by taxpayers, and spent $ 1.5 billion on bitcoin.
Which is mostly mined with electricity from coal.
There is still concern that the CO2 emissions of the cryptocurrency will escalate exponentially as the currency's price appreciates.
And the last comment of Tesla Chairman Elon Musk in an appearance on the exclusive social media network Clubhouse
Bitcoin is "on the verge" of being widely accepted as an official currency by the general public.
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