Elon Musk wants a more environmentally friendly Bitcoin. Does he have a plan or a dream?Reuters

© Reuters. File Photo: SpaceX owner and Tesla CEO Elon Musk at the E3 Game Convention in Los Angeles, CA on June 13, 2019, legendary game designer Todd Howard (no photo) I will give a lecture during the conversation with. REUTERS / Mike Blake

Tom Wilson and Anna Irella

London (Reuters)-Elon Musk states that it will not use or accept Bitcoin until it can be confirmed that Tesla is produced in a sustainable way. He may have been waiting for a while.

Musk announces his new position on Wednesday’s major U-turn as to whether there are plans to pull the crypto industry away from fossil fuels that power “mining,” an energy-intensive process of coin-making. , Called speculation among some experts.

According to more than 12 crypto experts interviewed by Reuters, Tesla itself makes Bitcoin more environmentally friendly by investing in new projects aimed at promoting the use of renewable energy in the mining industry. You can play an active role in making it gentle.

“Mask and Tesla certainly have the resources to support existing efforts to fully migrate Bitcoin to renewable energy,” said Diana Biggs, CEO of cryptocurrency startup Valour. ..

However, such ventures can take years to get going.

According to experts, another potential route is for Tesla to move from Bitcoin to a more environmentally friendly digital currency that does not rely on megacomputers to generate new tokens.

Still, they say this is also a major headache. In particular, we have broad crypto industry consensus on software changes to resolve regulatory concerns about small coins.

While Tesla will no longer accept Bitcoin payments (two months after its announcement), Musk will not sell Bitcoin’s holdings, instead when the mining industry becomes a more environmentally friendly energy source. I tweeted that I intend to use it.

Tesla is also considering other cryptocurrencies that use less than 1% of the energy consumed by Bitcoin, he added.

Industry experts interviewed by Reuters said they believe it is unlikely that Mask was fortunately unaware of the environmental issues surrounding Bitcoin production.

The move could represent an attempt to strengthen Tesla’s environmental certification amid intensifying competition in the electric vehicle sector, said Sashabe Slick, head of sustainable business development for Zurich’s Bank J. Safrasalacin. Said there is.

“This shows how we can further strengthen our brand,” he said. “It’s up to them to hold the currency they want, but given the fact that it has a heavy CO2 footprint, it’s challenging.”

Tesla did not immediately respond to the request for comment.

Greener option?

After his first tweet, Musk continued the next day with a chart showing Bitcoin’s power consumption. “The trend in energy use over the past few months is insane,” he writes.

Still, environmentalists have criticized Bitcoin’s energy consumption and fossil fuel reliance for years instead of months.

“Currently, the use of Bitcoin is inconsistent with Tesla’s own mission statement,” said Alex DeVries, founder of the research platform Digiconomist.

“This is not something that happened suddenly in the last two months when Tesla first decided to accept Bitcoin. The network was already running on fossil fuels like Chinese coal. In such a short time frame, nothing has actually changed. “

According to data from the University of Cambridge, the mining industry uses about the same amount of energy each year that Egypt used in 2019.

Many are powered by the dirtiest coal of all fossil fuels. Chinese miners account for about 70% of production, and university data show Many people use fossil fuels and switch to renewable energies such as hydropower during the rainy summer.

Watermarked Bitcoin?

Tesla can invest in more environmentally friendly mining options, said Eve Benim, founder of the Swiss crypto think tank 2B4CH. By itself, he added, it could create a group of Bitcoin miners that use green energy and connect customers to the mining pool.

Global projects are a way to shift Bitcoin mining to cleaner energy, or at least reduce its carbon footprint, by encrypting the heat generated by mining with flare gas, a by-product of oil extraction. I’m looking for a way to divert it to.

Settlement company Square Inc (NYSE :) is run by Twitter CEO Jack Dorsey and last year $ 10 million https: // squareup to help companies increase renewable energy use and efficiency in the Bitcoin sector. Announced that it will provide .com / us / en / press / carbon.

Theoretically, blockchain experts say it is possible to track which Bitcoins were produced in a sustainable way, giving Tesla the option to accept only eco-friendly Bitcoins. ..

“He can probably invest in some green energy miners and order Tesla to be paid only by green-mined Bitcoin,” said Mayazehabi, a cryptocurrency and blockchain consultant.

“There is a lot of talk about watermarked Bitcoin, which separates Bitcoin mined by Western countries from Bitcoin mined in China and North Korea.”

Bitcoin alternative

Tesla can also shift its focus on cryptocurrencies to tokens that run on low-power systems to create new digital coins.

Computers connected to the network via the Bitcoin protocol or the underlying code competed with each other to solve complex math puzzles. Known in cryptographic terms as “proof of work,” this system is extremely energy consuming.

Alternate protocols allow users to create new tokens by committing their existing cryptocurrencies to digital contracts. This may reduce your reliance on energy-intensive computers.

Ether, the second largest cryptocurrency, is migrating to this system known as the “Proof of Stake”. Still, many existing coins that use this system are still relatively difficult to use on a large scale and are not as widely known as Bitcoin.

“The only real answer is 1. Actively invest in renewable mining farms to make mining” more environmentally friendly “or 2. Switch to a protocol based on proof of stakes.” , Said Larry Cermak, Research Director of the crypto site The Block.

Cryptocurrencies with low energy consumption, such as the 7th largest coin XRP, may raise other concerns, according to experts.

Investors have been concerned about XRP since US regulators provided $ 1.3 billion in unregistered securities to blockchain companies, a major cryptocurrency backer last year. Ripple denied the charges.

Some have suggested changing the Bitcoin protocol itself to reduce power consumption. Still, experts warned that it would be difficult to get all users of Bitcoin’s decentralized miner network not operated by surveillance agencies to agree.

“The entire Bitcoin mining ecosystem has invested billions of dollars in hardware,” said Jack Liao, CEO of Chinese mining company Lightning Asic. “How can they change the protocol? The change means a loss of billions.”

Elon Musk wants a more environmentally friendly Bitcoin. Does he have a plan or a dream?Reuters

Source link Elon Musk wants a more environmentally friendly Bitcoin. Does he have a plan or a dream?Reuters

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