“Eel” like Elon Musk: Just last month, he also agreed that Bitcoin would help increase the use of clean energy, now he announced that he does not accept Bitcoin to protect the environment

After a month, Elon Musk almost turned 180 degrees.

Last month, an article titled “The Bitcoin Clean Energy Initiative” refuted the long-standing argument that Bitcoin mining seriously harms the environment and destroys the planet. The article argues that Bitcoin mining will encourage increased use of renewable energy, in place of carbon-emitting fossil energy.

This article has received the support of many celebrities, including billionaire Jack Dorsey of Square, Elon Musk of Tesla and Cathie Wood of Ark Invest.

In a post on Twitter, Square said that while renewables from the sun and wind can generate cheaper electricity than fossil fuels, these sources often generate electricity. many times larger than the demand. According to the researchers, this problem can be mitigated by building a coexistence of solar, wind, and Bitcoin mining ecosystems.

Although renewable energy costs only half or a third of fossil energy. But the geographical limitations of renewable energy projects make the allocation and use of this energy source not really effective. If Bitcoin mining “farms” are placed next to these renewable energy sources, a lot of problems will be solved.

Billionaire Elon Musk also agrees with the above point, when retweeting Jack Dorsey’s post as a Bitcoin supporter. Elon Musk’s Tesla company has accepted Bitcoin as a form of payment to be able to buy electric cars, while also investing $1.5 billion to buy Bitcoin as a form of reserve asset.

But after a month, Elon Musk almost turned 180 degrees. Tesla announced that it no longer accepts Bitcoin as payment for car purchases. The reason is because mining this cryptocurrency consumes too much energy and destroys the habitat on Earth.

At the same time, Elon Musk also revealed that he will look for another cryptocurrency, which takes less resources than Bitcoin. Immediately after this statement, the cryptocurrency market plummeted, the value of Bitcoin also dropped by more than 17% in just one day.

It is not clear what Elon Musk’s motives are behind, but this action shows the billionaire’s dizzying change in support and opposition to Bitcoin. If you think Bitcoin is a bad thing for the environment, then Tesla should not have supported this cryptocurrency in the first place. It goes against the motto of the electric car manufacturer, which is to protect the environment with clean energy.

The fact that Bitcoin consumes a lot of energy to mine is something that we have known for a long time, not recently. Earlier this year, researchers at the University of Cambridge estimated that Bitcoin consumes 121.36 terawatt-hours annually, more than the entire country of Argentina.

Not only deceiving from being for and against Bitcoin, Elon Musk and Tesla are also deceitful in using Bitcoin to beautify last quarter’s financial statements. By selling off about 10% of Tesla’s Bitcoin holdings, Elon Musk helped Tesla’s EPS (earnings per share) reach higher than analysts’ expectations, thereby satisfying investors. corporate investors.

This profit from the sale of Bitcoin is higher than the profit from the sale of Tesla’s electric car in Q1/2021. Without it, Tesla’s earnings will certainly fall short of expectations, and could leave investors unsatisfied.

Meanwhile, Elon Musk defended the move to demonstrate Bitcoin’s liquidity to Tesla’s board. This action of Elon Musk also made the cryptocurrency market red for a few days in mid-April.

Reference: cointelegraph

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