Billionaire criticism was enough to cause the price of Bitcoin to plummet by 15%.This is what Elon Musk said about cryptocurrency
Be one of the oracles Cryptocurrency, The founder of Tesla, Elon Musk Criticizing Bitcoin’s growing impact on the environment has caused Bitcoin’s price to tremble, raising further questions about the future of virtual currencies.
Bitcoin mining has become a battle of computing power. As machines compete to perform complex calculations, machines eat up electricity.
The billionaire insisted on Thursday. He tweeted: “The energy use in recent months has been crazy.” He shared a chart of the Cambridge Bitcoin Electricity Consumption Index (CBECI).
The table shows the evolution of estimated electricity consumption so that Virtual currency, Since 2016, its growth has been almost stable at an annual rate and has accelerated sharply since the end of 2020.
Currently, this consumption is estimated to have reached its highest level in history, at 149 TWh (megawatt-hours, equivalent to one trillion watt-hours).
For comparison, according to International Energy Agency (IEA) analyst George Kamiya, Google’s consumption in 2019 was 12.2 TWh. Except for mining Bitcoin, the energy consumption of all data centers in the world is equal to Approximately 200 TWh.
However, when looking at the upper limit of the CBECI estimate, things get complicated.The slope is much more vertical, if the hunter Bitcoin, “miners”, They will use more energy-consuming equipment.
The price of Bitcoin is Plummeted 15%Announced in Musk on Wednesday Tesla As long as its mining consumes so much fossil fuel, especially coal, it will no longer accept payment for its vehicles in this cryptocurrency.
The manufacturer’s customers also invested 1.5 billion U.S. dollars in virtual currency in February, which can be used to purchase cars of the brand from the end of March.
The origin of the energy market’s growing frenzy Bitcoin, These miners are eager for a juicy return. Their capital exceeded $1 trillion at the beginning of the year and then fell again, which led to a doubling of data centers dedicated to the activity.
In order to comply with the security code of the Bitcoin issuance network, miners must solve complex equations that are not directly related to transactions. In return, they will automatically receive “Proof of Work” rewards in the form of cryptocurrency every ten minutes.
Therefore, as the price of Bitcoin has risen, interest in mining has also increased, and therefore the consumption of electricity has also increased.
Then, the impact on the environment is growing: Science Journal natural A study published last month showed that China, Nearly 80% of the world’s cryptocurrency transactions are generated here, and it runs the risk of endangering Beijing’s climate goals.
In this country, part of the mining is at the cost of electricity generated from the particularly polluting lignite coal.
But to be China Bloomberg predicts that in order to allow the use of renewable energy for mass production of cryptocurrencies, we must wait until 2060.