Bitcoin Miners Reveal Why Tesla Should Re-Accept Cryptocurrency as a Payment Method
The Bitcoin Mining Council (BMC) has released a report showing that 58.4 percent of the energy consumption of the Bitcoin network comes from renewable sources. This is a significant milestone, as Tesla CEO Elon Musk said last year that his company would start accepting BTC as a payment method for its electric cars again if the share of energy consumption by miners from sustainable sources exceeded 50 percent. Accordingly, Bitcoin fans are now waiting for action from the entrepreneur.
Recall that the Bitcoin Mining Council is a North American community of miners who care about the environment and maintain the reputation of Bitcoin as a fairly safe phenomenon for the environment. As the head of MicroStrategy Michael Saylor noted, the organization promotes the transparency of the BTC industry, as well as its mining procedures. In general, they focus on the educational function of the company.
Does Tesla support bitcoin payments?
In 2021, Musk took part in a discussion with BMC to discuss the future of Bitcoin mining and its potential for a renewable energy transition. Then he said that the result of the conversation was "promising". In the past, there were open channels of communication between the Tesla CEO and members of the BMC, but the organization did not accept the billionaire himself due to fears of possible centralization.
In general, the history of Tesla's "relationship" with the main cryptocurrency is full of ups and downs. At the beginning of last year, Elon suddenly announced that the company was investing in Bitcoin , and would also allow you to buy its electric cars for it. This news led to a sharp price jump in BTC, but after a few weeks, Tesla stopped accepting bitcoins . The reason is the negative impact of mining on the environment.
All this happened in the spring of 2021 — a few weeks before the grand collapse of the cryptocurrency market in May, the details of which we have collected in a separate article. It was then that a ban on the mining of Bitcoin and other coins was issued in various provinces of China. At the same time, Elon's harsh comments about BTC also affected the situation around the coin.
A little later, the head of Tesla called a condition that would allow the company to return to crypto payments for the second time. Here is his archival replica.
When there is evidence of a reasonable (approximately 50 percent) use of clean energy by miners with a positive trend in the future, Tesla will resume accepting BTC as a means of payment.
The day before, representatives of the Bitcoin Mining Council said that the energy consumption of miners is indeed provided by more than 50 percent of renewable sources. According to CryptoSlate sources , the organization includes the main players in the mining industry - Hive , Hut8, Riot, Marathon, Microstrategy, BlockFi, Argo and others. Accordingly, they are responsible for their own data with their reputation, in addition, their data must be accurate enough, because companies represent the coin mining niche and understand it.
Will Musk consider their report a satisfactory condition for crypto payments for Tesla electric cars? If so, the market can expect a significant bounce as this is very positive news, plus the Elon Musk brand in the crypto space will definitely boost BTC adoption. Otherwise, it is most likely not worth waiting for a strong collapse: nevertheless, now the attention of traders is more directed to the global economy and the policy of the US Federal Reserve System . And besides, Tesla has not interacted with BTC for at least a year.
By the way, about the adoption of digital assets. According to the CEO of the largest American crypto exchange Coinbase, Brian Armstrong, in the next 10-20 years the number of active users of cryptocurrencies can increase up to 1 billion. Here is his quote from a recent speech at the Milken Institute Global Conference event, quoted by CryptoPotato .
I believe that in 10-20 years we will see how a significant part of the GDP will come from the crypto economy.
In other words, the expert predicts the popularization of digital assets along with the growth of available positions in this area. Obviously, it is really possible to bet on the development of projects, because in order to attract such a number of users, even more cases of using coins are needed.
Given the growth in the number of new cryptocurrency users over the past year, Armstrong's prediction sounds logical. In the first six months of 2021, the number of people involved in the crypto market has more than doubled, surpassing the 220 million mark. It is worth noting that during this period, the price of Bitcoin and most altcoins quite often reached historical highs. For example, in April 2021, the main cryptocurrency exceeded the $60,000 mark, which coincided with a sharp increase in the influx of new users.
We believe that the resumption of interaction with BTC by Tesla would be a logical action on the part of Elon Musk. Nevertheless, the entrepreneur promised to start accepting the cryptocurrency again if the process of its production becomes greener - and this really happened. BTC miners, especially those from the US and other advanced regions, are really looking for renewable energy options for bitcoin mining and are doing well.
The main thing is that Elon has enough time to study this issue. Not so long ago, the billionaire acquired Twitter, so now he pays a lot of attention to the social platform. I would like to believe that things will also come to BTC.
Look for even more interesting and useful information in our millionaire crypto chat . There we also talk about other topics related to digital assets and other innovations.
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