- Sustainable energy usage of BTC has improved, according to the Bitcoin Mining Council.
- After achieving a minimum sustainability threshold, Elon Musk said he would reinstate BTC for Tesla payments.
- There are no indications that Elon Musk will resume Bitcoin payments.
In June 2021, Tesla CEO Elon Musk stated that he would reinstate Bitcoin as a payment method for electric cars if the network achieves at least 50% clean energy usage.
The BTC price saw a 50% drawdown, dealing a blow to advocates, who saw Tesla’s initial acceptance of the payment method, in January 2021, as a significant milestone in the journey to mass adoption.
The latest H1 2023 report from the Bitcoin Mining Council (BMC) showed that the network’s sustainable energy mix now stands at 59.9%, surpassing Musk’s threshold and leading to further calls from the community for Musk to make good on his word. Wading into the debate, Web3 Educator Mystery of Crypto asked:
“When will Tesla resume Bitcoin payments?”
Bitcoin Network Sustainability On the Rise
The BMC was formed in May 2021 by MicroStrategy Chair Michael Saylor and others as a response to Tesla’s U-turn on accepting Bitcoin as a payment method. According to the BMC website, the organization’s mandate is:
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“to promote transparency, share best practices, and educate the public on the benefits of Bitcoin and Bitcoin mining.”
Bitcoin is often criticized for its energy usage, with data from the Cambridge Bitcoin Electricity Consumption Index estimating its annual consumption rate at 138.51 TW/h.
The BMC’s latest H1 2023 report showed Bitcoin mining accounted for “an inconsequential amount” of global energy usage at 17 basis points (bps), or 0.17% of the world’s energy draw. Furthermore, the network’s energy sustainability mix was estimated at 59.9%.
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Current global energy usage was unchanged from the Q4 2022 report. While the energy sustainability mix had improved from the reported 58.9% rate.
Tesla Has Not Sold BTC Since Q2 2022
Despite the apparent snub, Tesla’s Bitcoin holdings remain unchanged at $184 million – indicating the company has not sold, or bought, any BTC since Q2 2022, according to its latest earnings report.
During the second quarter of 2022, the electric car maker offloaded 75% of its BTC holdings, shrinking its initial $1.5 billion investment to $218 million. The company accounted for a $34 million impairment loss in Q4 2022, taking the $218 million valuation of the remaining Bitcoin to $184 million.
On the Flipside
- There are doubts about the rigorousness of BMC’s data derived from survey responses.
- The volatility of Bitcoin poses a financial risk to companies accepting it for payments, particularly when the rest of operations are priced in fiat.
Why This Matters
Bitcoin’s Proof-of-Work (PoW) consensus mechanism has proven a major sticking for environmentalists since it began gaining traction around 2017 – when it broke and held the $1,000 price floor. Reducing its environmental impact is key to winning over the doubters and paving the way for greater acceptance among the general public. Furthermore, the boost in credibility would likely encourage more companies besides Tesla to accept BTC for payments.
Find out what is happening with Bitcoin spot ETF applications:
Are the SEC’s Protocols Slowing Down Bitcoin ETFs?
Read the latest on the race between Telegram and X:
Is Telegram Set to Beat Musk’s X to Payments via New Wallet?
