Bitcoin’s BTC/USD renewable energy usage for mining purposes has reportedly crossed the 50% mark, meeting the criteria set by Tesla Inc. TSLA for reconsidering Bitcoin payments.
What Happened: According to a report by Bloomberg analyst Jamie Coutts, the use of clean energy for Bitcoin mining has now exceeded 50%. This change is primarily a result of the dispersion of miners following China’s mining ban last year and the active pursuit of renewable energy sources by countries including El Salvador, Bhutan, Oman, and the United Arab Emirates.
In 2021, Elon Musk, the CEO of Tesla, announced that the electric vehicle giant would contemplate accepting Bitcoin as payment once miners exceeded 50% use of clean energy with a “positive future trend”. This milestone seems to have been recently achieved, yet Musk has not yet confirmed any updates to Tesla’s Bitcoin payment policy.
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Why It Matters: Early in 2021, Tesla made a significant investment in Bitcoin, only to temporarily suspend vehicle purchases using the cryptocurrency due to environmental concerns. The company expressed concerns over the rapidly increasing use of fossil fuels for Bitcoin mining and transactions.
Further, Tesla reportedly made changes to its payment page source code, removing Bitcoin while retaining Dogecoin as an accepted cryptocurrency.
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