Elon Musk takes a flip as his company Tesla will no longer accept payments in bitcoins. He also showed concerns over bitcoin’s effect on climate.
Celsius network founder and CEO Alex Mashinsky said bitcoin doesn’t need Elon musk, and it is up by 20 million % in the last decade and has been the best performing asset class for this decade.
He also stated that Tesla made profit of 300 million dollars by selling a portion of its bitcoin possessions.
In a recent series of events, Tesla took a u-turn from its decision of march that it will accept payments in bitcoin. It was followed by him tweeting a chart of Bitcoin’s power consumption mentioning the fact and termed it as insane. These cumulatively made cryptomarket stumble and bitcoin going low by 17% since March 1 on Wednesday.
Bitcoin is an energy eating beast
Bitcoin’s energy consumption index suggests that it is something that needs loads of power to function. In comparison, it reveals that its energy consumption pegged at 151.16 TWh having a peak of 519.96 TWh. Scotland uses around 25TWh of electricity in a year, though it has an engagement of 5 million consumers.
Most of the energy is needed to keep the decentralized computer network awake for making complex calculations while mining new coins or completing the transaction with existing coins.
The effect named Elon Musk
While Elon Musk is one of the vocal billionaire advocates of cryptocurrencies, his opinions affect the market trends as for as bitcoin has seen a spike after Tesla has announced to accept payment, it went for a downhill journey after his recent actions.
Despite this, in a recent press appearance, Celsius Network’s founder and CEO Alex Mashinsky denied any long-term effect of these events. He has shown confidence that the crypto market will rise and bitcoin will also show the same trends. He said, “Bitcoin doesn’t need Elon Musk”.
Energy eating is normal among cryptocurrencies
Almost all currencies work on a similar concept as bitcoin, and none of them is exceptionally environment friendly so, calling out just bitcoin is selective. Though the second most valuable cryptocurrency Ethereum will make the switch to a more energy-efficient proof of stake system, the end of the year. The situation will improve in the following years as several new alternatives, like chia or Neptune Digital Asset’s “clean energy bitcoin” will enter the market.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.