Experts warned that Tesla's $1.5 billion bitcoin purchase could negatively affect the natural environment. Tesla's decision has boosted the bitcoin industry, which can lead to more greenhouse gas emissions.
LONDON, ENGLAND - DECEMBER 07: A visual representation of the digital Cryptocurrency, Bitcoin on December 07, 2017 in London, England. Cryptocurrencies including Bitcoin, Ethereum, and Lightcoin have seen unprecedented growth in 2017, despite remaining extremely volatile. While digital currencies across the board have divided opinion between financial institutions, and now have a market cap of around 175 Billion USD.
Analysts are now concerned since Tesla confirmed that it is considering accepting bitcoin currently as payment in the future, which now makes the price of bitcoin an all-time high.
"It's hard to imagine, frankly a more credible endorsement than one coming from folks like Elon [Musk] who are inventing the future," said the crypto asset company blockchain.com's research head Garrick Hileman via The Verge's latest report.
How can bitcoin affect the environment?
According to Digital Journal's latest, bitcoin is a digital currency that increases its value when it is used more widespread. Experts explained that if the currency's price rises, bitcoin mining also ramps up.
LONDON, ENGLAND - AUGUST 15: In this photo illustration a visual representation of the digital currency Bitcoin sinks into water on August 15, 2018 in London, England. Most digital currencies including Bitcoin, (BTC) Ethereum, (ETH) Ripple (XRP) and Stella (XLM) have seen a dramatic fall in their prices throughout 2018 amid a 'mass sell-off'. In December 2017 the price of BTC hit $20,000 USD but has since fallen to around $6000 USD.
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Some people might be confused since bitcoin mining actually happens virtually. Although this is the case, this activity can still increase the emission of greenhouse gases, which could fuel a climate crisis across the globe.
Tesla's current action seems to contradict one of its main goals, which is to accelerate the world's transition to sustainable energy. This is also the main reason why it is focusing on developing and manufacturing electric vehicles, which could help reduce greenhouse gas emissions.
Tesla's $1.5 billion bitcoin purchase is now one of the main reasons why it is completely rising.
What is bitcoin?
Bitcoin was specifically created to remove the need for a third-party service, such as a bank, online apps, etc. It is designed to oversee financial transactions.
To keep the consumers' data and info safe, miners are required to solve ultra-complex numeric problems. Because of the required high power, miners have no choice, but to create high-tech machines that use a huge amount of electricity to solve those issues. This could lead to climate pollution.
In short, if bitcoin's value increases in a country, the annual electricity consumption would rank 30th across the globe.
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Written by: Giuliano de Leon.
