How does Elon Musk affect the crypto space?

The reason Tesla discontinued support for using BTC to purchase vehicles is that the company is concerned about the “rapidly increasing use of fossil fuels for Bitcoin mining and trading (especially coal)”. Does it sound reasonable for a company that develops electric vehicles?

First of all, whether BTC is Waste of energy This is not new and has been debated by industry experts for some time. At the same time, mainstream media such as New York Times, Financial Times, Bloomberg and so on.Go all out headline News After Musk’s comments, blame Huge encryption vitality use.they Mentioned According to the Bitcoin Power Consumption Index of the University of Cambridge, the total amount of electricity currently used by Bitcoin miners worldwide is about 113 terawatt hours per year.But they did not mention—intentionally or unintentionally—is the latest research from the Cambridge Centre for Alternative Finance statement 39% of all energy consumption used in BTC mining comes from renewable energy sources.

More interestingly, Galaxy Digital Published a report Titled “On Bitcoin’s Energy Consumption: A Quantitative Method for Subjective Issues,” the company estimates that the energy consumption of the traditional financial sector is about 260 terawatt hours per year, more than twice that of the Bitcoin industry. However, the estimated value is only from the available data, which means that the actual figure can be said to be much higher.

Another important note is COVID-19 outbreak As well as the huge transition to digitalization on a global scale, we must place the issue of encrypted energy consumption in a wider Internet use environment. As Travis Nichols, Media Director of Greenpeace in the United States (Travis Nichols) Point out:&Nbsp;

As Web services grow and become more and more complex, the demand for computing power will continue to grow in the next few years, which will require more energy.

In addition, billionaire investor and Dallas Mavericks owner Mark Cuban (Mark Cuban) decided not to withdraw support for Bitcoin payments. Arguing with Elon Musk:

“We know that replacing gold as a store of value will help improve the environment. […] Reducing the use of big banks and coins will benefit society and the environment.

If we go back to Musk’s accusations against Bitcoin, they do have a negative impact on the entire industry.For example, an environmentally-conscious bill in New York State will Suspended for three years If it passes the state Senate, cryptocurrency mining will begin. But, as they said, every cloud has a silver lining.The good thing is that by drawing attention to the carbon footprint generated by the cryptocurrency industry, the space can move toward sustainable development faster, because A global pandemic happened, Which forces global governments to commit to green energy in COVID-19.

Cointelegraph reached out to experts in the cryptocurrency and blockchain industry to ask for their views on the following issues: How do all these Elon Musk comments affect the entire cryptocurrency field?

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