Elon Musk will always remain an enigmatic personality, either for better or worse. After nearly single handedly driving the Bitcoin price down, he now wants to help address the environmental concerns surrounding Bitcoin mining. Musk will organize this new effort with the help of Michael Saylor, CEO of MicroStrategy.
The Contrarian Ideas of Elon Musk
Two weeks ago, it seemed as if Elon Musk was single handedly driving down the price of Bitcoin. After issuing comments about Tesla no longer accepting BTC payments due to how mining affects the environment, the price started to plummet quickly. Although the non-acceptance of BTC payments will hurt Tesla far more than the leading cryptocurrency, the market went in a downward spiral.
While it is true the electricity usage of Bitcoin is a topic of debate, the impact on the environment is much smaller than people assume. Most of the mining occurs through renewable energy already, something that Tesla values highly. However, there is always room for improvement, which is why the newly-formed Bitcoin Mining Council can prove to be of interest.
The current plan is for North American Bitcoin miners to publicize their current and planned usage of renewables. Moreover, the Bitcoin Mining Council will advise other miners globally to do the same. Interestingly, this meeting between Elon Musk and the Bitcoin miners was hosted by MicroStrategy CEO Michael Saylor, a notorious Bitcoin bull.
Standardizing the energy reporting requirements and setting industry-wide ESG goals are two ambitious goals. It will be interesting to see if this effort gains traction outside of North America as well. Convincing Bitcoin miners in Europe and Asia, for example, may prove a lot more difficult than initially assumed.
Bitcoin Price Recovers Slightly
As soon as Elon Musk tweeted about the Bitcoin Mining Council, the BTC price started moving up slightly. It even surpassed $40,000 again, albeit very briefly. Today, prices are slowly heading to the low $38,000s again and may drop below that threshold again before the day is over. All crypto markets remain in an easy place right now, a trend that may continue for some time to come.
Various North American companies pledge to support this new initiative. Support from Argo Blockchain, Galaxy Digital, HIVE Blockchain, Hut 8 Mining, and others is a crucial first step. However, the majority of Bitcoin mining is still taking place in China. That situation may come to change if the local government tries to crack down on this activity. For now, the outlook in China remains unclear, like it usually is.
A streamlined approach to Bitcoin mining and renewable energy is beneficial. Something needs to be done to put all the concerns regarding the environmental impact to rest. If prominent figures like Elon musk and Michael Saylor want to spearhead these efforts, all the better. It brings more legitimacy to the broader cryptocurrency industry as a whole.
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