The discussion about the use of dirty electricity in mining, started by Elon Musk, crashed the market, but not for a long time.
As it turned out, the statement that miners mainly use electricity from coal-fired power plants is not true. Moreover, it is obvious now that the bitcoin mining industry is almost number one in terms of sustainable development.
After Musk accused the miners of using dirty energy in their business, the Bitcoin Mining Council (BMC) was created. The council conducted research within 32% of the bitcoin network and found that BMC members currently use up to 67% green energy.
Based on this data, the Council concludes that the use of renewable energy in mining increased to 56% in the second quarter of this year. Thus, the bitcoin mining industry has become “one of the most sustainable industries in the world”.
The reason for the creation of BMC was a statement of Tesla’s board that the company is suspending accepting payments in BTC due to the non-ecological nature of mining. The council has set itself the goal of increasing the transparency of mining and debunking myths that mining negatively affects the environment.
After several statements from BMC that prove the green nature of the industry, Elon Musk tweeted that Tesla is ready to resume accepting payments in BTC. He clarified:
– When there’s confirmation of reasonable (~ 50%) clean energy usage by miners with a positive future trend, Tesla will resume allowing Bitcoin transactions.
When Tesla announced that it would stop accepting bitcoins as payment for the cars, the price of BTC fell almost 2 times in 10 days. On May 12, BTC was worth $57372 according to Coinmarketcap. On May 23 it’s price was as low as $32,830. Experts admit that now, if Tesla resumes accepting bitcoins, this could trigger a new wave of rise in the first cryptocurrency, which has been showing sideways dynamics since May 23.
This long flat has already given rise to many predictions, mainly panic, according to which bitcoin may drop to $7000. British expert Clem Chamber, who announced this forecast, points to constantly falling trading volumes. In a month and a half, the volumes decreased almost 2 times, from $46 billion to $26.5 billion per day. If Tesla does indeed resume sales for BTC, it will be important positive news for the market.