It seems that Elon has done a complete backflip on his bullishness towards Bitcoin and is now asserting his power and influence to wage war against the very asset that has made him and his company billions.
Elon launched a negative attack on Bitcoin’s fundamentals to stir mass hysteria and fud on the entire crypto industry.
Saylor Fights Back
Michael Saylor has joined the debate to shed some light on the truth and offer some real facts over claims that Bitcoin is “bad for the environment”.
Michael Saylor intelligently articulates that while Bitcoin mining does use energy, it is actually powered by “wasted energy”: the 30% of lost excess energy generated by the world’s power grid. He argues that stopping Bitcoin mining would have no effect on reducing the amount of energy already being wasted in the world.
“The least energy intensive, most efficient technology that we have perhaps discovered, ever, in the history of the human race.”
Michael Saylor
The beneficial advantages that the blockchain solves in our society makes it’s energy usage justified. For Bitcoin, this energy expenditure is a small price to pay for a censorship-resistant digital bearer asset, one that lets citizens of the world to escape a broken centralized financial system and improve people’s lives exponentially.
He also explains that Bitcoin mining will decrease in the near future; as the last of the 21 million Bitcoins in existence are mined. Every four years, the revenue and the block rewards for Bitcoin are falling, so by the year 2035, 99% of the world’s Bitcoin will have been mined. This means that over time, Bitcoin brilliantly becomes less energy-taxing on the environment.
If you take all the energy of used in the Bitcoin network it amounts to 25 basis points of all the wasted energy. So 1/4 of 1% of the wasted energy in the world, offers the hope of a decent life to 8 Billion people and solves an economic problem”.
Michael Saylor
To slander crypto-mining as an inherently dirty business, appears intellectually dishonest and deliberately deceptive. Is Elon looking to get enter the cryptocurrency market himself and partner with Dogecoin to save the world from the ‘harmful environmental impact’ of Bitcoin mining? For starters, if Dogecoin was ever to be a serious contender for the ‘currency of earth’, or mars for that matter, it would want to be deflationary (as Bitcoin is) and also decentralised (as Bitcoin is), ie: not having 30% of the circulating supply owned by one person (as Doge is).
Elon Still Bullish on DOGE
Following a bizarre poll on Twitter on May 11, asking followers if they wanted Tesla to accept Doge; Elon took to Twitter again on May 13- this time to condemn Bitcoin, renouncing BTC purchases for Tesla due to ‘environmental concerns’. As cryptic as Elon’s tweets often are, you don’t have to be a genius to read between the lines; as he clearly hints at an alternative cryptocurrency being a more favourable alternative; stating: “we are looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction”.
What is Elon Musk’s agenda here? Is he really concerned about the burning of fossil fuels, in particular coal, used to mine Bitcoin, or is he carefully turning the debate to focus on something much bigger? Is it about creating further hype around Dogecoin, or something else that would hugely benefit Tesla’s financial interests?
If you’re going to focus on environmental issues, particularly those centred around the world’s consumption of coal, there are a lot of other places to start, than criticising the use of energy required to mine Bitcoin.
Will we see Bitcoin go to a proof of work model like Ethereum 2.0 which is greener and better for the environment.
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