Bitcoin is the world’s topmost cryptocurrency in terms of market capitalization, having a per token cost of over $49 thousand. It has been performing well when compared to other cryptocurrency exchange tokens. Recently, after Tesla CEO Elon Musk stated they would not be accepting Bitcoins or subsequent cryptocurrencies as a means of payment for their cars, Bitcoin prices started to go down substantially. Its token prices went to a two-month low, approximately 17% after Elon’s statement on the increased carbon footprint and energy consumption caused due to cryptocurrency mining and trading worldwide.
China is responsible for close to 80% of all cryptocurrency mining and uses its energy resources at an incredibly fast pace. Apart from, using electricity, they utilize various fossil fuels called lignite to run few aspects of cryptocurrency mining, which increases carbon footprint at a fast rate. As Tesla brought this issue of increasing energy consumption from cryptocurrency mining to light, miners and traders of these digital currencies have to start thinking about more power-efficient modes of doing business and work on decreasing carbon footprint.
Bitcoin is a cryptocurrency that works on the principle of “proof of work” within which computers have to solve various complex mathematics problems, which require constant use of energy resources. Elon Musk shared his concerns about the increased use of fossil fuels and increased carbon footprint for mining cryptocurrencies like bitcoin on Twitter this week. Coal has the worst carbon footprint of all fossil fuels, and China uses lignite extensively in its mining operations, which in turn has resulted in depleting weather conditions.
Bitcoin has been a major contributor to energy consumption as it is the most expensive and has the most market capitalization. Reportedly, the energy consumption due to cryptocurrency mining per year is equivalent to the energy consumption of the whole Switzerland for the same period. This speaks a lot in terms of the extensive issue we face concerning increased energy consumption due to mining. Tesla CEO is known to support cryptocurrency trade wholeheartedly. Elon has a positive stance on cryptocurrency trades and owns a large inventory of these digital currencies. Elon Musk, an avid supporter of cryptocurrency trade, backed out on using it as a means of payment for his company goes out to depict that the issue of energy consumption and increasing carbon footprint is a thing to worry about. Bitcoin tokens have fallen in value considerably after Elon addressed it and are currently at a two-month low. Bitcoin miners have to find newer and more energy-efficient methods of mining, helping reduce the carbon footprint and effectively decreasing the environmental effects.