The use of renewable energy in the Bitcoin network reached 57%; Why does Tesla not resume acceptance?
According to the Bitcoin Mining Council, 57% of the bitcoin network’s energy is currently sourced from renewable sources. However, some believe that the statistics of the Bitcoin Mining Council are not accurate enough and do not have much credibility.
To Report Bitcoin extraction, the energy consumption of bitcoin mining, is one of the topics that has attracted a lot of traders’ attention in the digital currency space. Chinese officials have also cited problems with high energy consumption and the environmental impact of the digital currency as the reason for its ban. China’s move pushed the miners out of the region en masse, after which the country’s share of the digital currency network hash was reduced to zero.
Tesla also mentioned this when it announced that it would stop accepting bitcoins for sale after two months. According to Tesla CEO Ilan Musk, the company’s condition for re-accepting bitcoin as a payment method is that at least 50 percent of the energy used in the digital currency extraction process be sourced from renewable sources.
A number of bitcoin miners set up a bitcoin mining council in June to follow up and publish reports on bitcoin mining activities. One of the statistics that the Bitcoin Mining Council was to publish was the extent to which the network uses renewable energy. The council first reported in the second quarter of 2021 that more than 50 percent of the energy used to mine bitcoins is renewable.
In October, the council once again published a report on the energy consumption of the Bitcoin network. According to the report, the consumption of renewable energy in the third quarter of 2021 increased to 57.7%.
These figures are clearly higher than the figures set by Ilan Mask in June as a requirement for re-accepting bitcoin.
He wrote about six months ago, in response to a news tweet accusing him of fluctuating in the bitcoin market:
It is not true. Tesla sold only 10 percent of its assets to confirm that bitcoin could be cashed easily and without market movement. Tesla will resume bitcoin acceptance when it is confirmed that miners are using clean energy at a reasonable rate (about 50%) and will continue to do so in the future.
Why does Tesla not resume accepting bitcoins?
Bitcoin fans on Twitter have somehow asked Mask to reconsider accepting bitcoin in the sale of Tesla cars. They used data from a bitcoin mining council report to show that more than 50 percent of mining activities are now done using clean energy.
However, some have questioned the validity of the figures reported by the council. They cited a report by the Bitcoin Mining Council, which said only 33 percent of members of the Bitcoin network took part in the council’s poll. Some argue that there is no way to obtain reliable data using such surveys. To determine exactly what the share of clean energy use in the Bitcoin network is, energy inputs must be segregated and carefully considered.
There is no doubt that if Tesla resumes accepting bitcoin, the market will also benefit from its positive consequences. The price of bitcoin rose when the company first used digital currencies in its transactions.
Although reports from the Bitcoin Mining Council show that the use of clean energy in the extraction of this digital currency has now exceeded 50%, Ilan Mask or Tesla have not yet spoken about the resumption of Bitcoin payments.