The Tesla (NASDAQ:TSLA) CEO Elon Musk’s Tweets helped drive some of the gains in Bitcoin in recent months, but this wk he triggered a 17% dip in the value of the world’ #1 cryptocurrency when he said his company’s customers would no longer be able to use Bitcoin to buy its cars.
Driving the company’s decision, CEO Musk said was concern over the amount of energy it takes to “mine” Bitcoin, with much of it done in China using cheap, climate-destroying thermal coal. Tesla may revisit the decision if the situation changes, he added.
Bitcoin is created when high-powered computers compete against other machines to solve complex mathematical puzzles, an energy-intensive process.
Several investors in the EV maker contacted said they were happy with Mr. Musk’s decision about Bitcoin.
“The energy waste should be avoided regardless of its color. And Tesla should focus on its core business. Drop the bitcoin position and move on,” said APG Asset Management Chief Investment Officer Peter Branner, a Tesla investor.
Bitcoin mining uses about the same amount of energy annually as the Netherlands did in Y 2019, data from the University of Cambridge and the International Energy Agency showed, generating up to 22.9-M tonnes of CO2 (carbon dioxide) emissions a yr, according to a Y 2019 study in scientific journal Joule.
Have a healthy weekend, Keep the Faith!