Why Might Tesla Have To Restart Bitcoin Payments?

The results of the Bitcoin Mining Council’s second-quarter survey have been released. According to the survey, the worldwide bitcoin mining industry’s sustainable electricity mix is 59.5 percent.

With a sustainability mix of 59.5 percent, Bitcoin’s power mix is above 50 percent for the fifth quarter in a row. Tesla stopped allowing Bitcoin transactions in May 2021, citing environmental concerns. He indicated that a persistent reliance on renewable energy for more than 50% of Bitcoin mining would be the criterion for the return of Bitcoin as a payment method.

Bitcoin Mining Advances in Technology and Energy

Bitcoin mining has long been chastised for its high energy use. Proof-Of-Work, Bitcoin’s consensus method, is intended to stimulate competition among miners, resulting in excessive energy consumption. However, recent evidence indicates that Bitcoin has made significant gains.

The Bitcoin Mining Council collects data from more than half of the worldwide Bitcoin network and provides a fairly accurate depiction of the network as a whole.

The survey by BMC reveals that global mining’s sustainable power mix has increased by more than 6% in the last year. The survey also reveals that Bitcoin’s technological efficiency has gone up by 46% to 21.1 EH.

Michael Saylor, CEO of MicroStrategy and a significant backer of BMC, praised the network’s technological advancement. He also stated that no other industry has this amount of clean energy and efficiency.

Bitcoin supporters have long argued that fiat currencies have a greater detrimental environmental impact than Bitcoin. Willy Woo, a well-known Bitcoin analyst, points out that Bitcoin mining consumes useless energy.

Tesla Could Postpone Bitcoin Resumption

According to a recent study, Tesla’s Bitcoin investments may result in a significant loss. According to Barclays analyst Brian Johnson, Tesla’s Bitcoin assets will incur a $460 million loss.

Tesla acquired its Bitcoin holdings at a price of roughly $32,000. Bitcoin, on the other hand, had its worst financial quarter in a decade due to inflation fears and the Fed’s interest rate hike. task as a whole.