“We are concerned about the rapid increase in fossil fuels for bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” he said in a statement released on Twitter Today evening.
“Cryptocurrency is a good idea on many levels,” Musk said, adding that the company believes it has a “promising future”.
“But it can’t come at a huge cost to the environment.”
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Musk said Tesla would not sell any bitcoin, adding, “We intend to use it for transactions once more mining changes are made to more sustainable energy.”
He said the company was taking care of other cryptocurrencies that use less than one percent of Bitcoin’s energy.
In February, the company announced its acquisition of Bitcoin for $ 1.5 billion.
A month later, Musk said he would accept Bitcoin as a fee for his vehicles.
According to CoinMarketCap, Bitcoin is the highest rated cryptocurrency by market value.
There are currently more than 18.7 million bitcoins in circulation, valued at $ 51,149.98 each.
Bitcoin, a blockchain cryptocurrency is created or ‘cut’ using more powerful, specialized computers. Miners use these computers to solve complex mathematical puzzles to create bitcoin.
Bitcoin mining practice has erupted in recent years.
Bitcoins and other blockchain-based cryptocurrencies are “very bad for the environment,” Werner Antweiler, an associate professor at the University of British Columbia’s Souder School of Business, told Global News in an email.
He said that the electricity needed for the calculations was due to the fact that “electricity comes mainly from fossil fuel sources, both in China and the United States.”
In fact, according to University of Cambridge, UK Bitcoin mining uses more energy annually than in Malaysia or Sweden.
University Bitcoin Electricity Consumption Index, It measures the energy required to create the currency, Bitcoin uses 147.79 TWh / hour (TWh) per year, while Malaysia and Sweden use 147.21 TWh and 131.80 TWh respectively.
Antwieler said Tesla’s move to buy bitcoins had fueled a frenzy about bitcoins, calling it a “grave error of judgment.”
“I am glad they have now decided to opt out of Bitcoins, which is usually the payment method for selecting fraudsters and money launderers,” he wrote.
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Andwheeler said there are “greener alternatives”.
“Digital currencies that we can all use will be provided by central banks and will be fully convertible from 1 to 1 for our Fiat currencies such as the Canadian dollar,” he wrote. “Since digital currencies do not need to trust blockchains, they are computationally very simple and environmentally friendly.
Chris Weston, head of research at Pepperstone’s broker in Melbourne, told Reuters that Muskin’s reaction was a blow to Bitcoin, but an endorsement of the currency’s carbon footprint.
“Tesla has got the image of being eco-friendly, and Bitcoin is the opposite,” Weston told the store.
With files from Reuters
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