Elon Musk said in a recent tweet that he talked with “North American Bitcoin miners” regarding the issue of crypto’s long-term viability. Bitcoin’s value increased by $2,000 almost instantly.
Following a meeting of “leading” Bitcoin miners and Elon Musk, a new Bitcoin Mining Council has been established to boost the cryptocurrency’s long-term viability.
Tesla CEO Elon Musk described the production as “potentially promising.” The council is expected to “promote electricity use accountability” and allow miners to switch to green energy sources.
Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising.
— Elon Musk (@elonmusk) May 24, 2021
The current method of mining Bitcoin uses a significant amount of energy. Its value plummeted earlier this month after Tesla announced that it will no longer fund the cryptocurrency due to environmental issues.
Bitcoin is based on the blockchain, and is a decentralized distributed database with transactions. Bitcoin trades are validated by miners in return for the chance to purchase the digital currency.
It necessitates massive computational capacity, which in turn necessitates massive quantities of energy.
The economics of Bitcoin mining require that the miner work out the cheapest possible energy, which in the United States might be hydroelectric power, but in China has often been coal-fired power plants.
And if the Chinese government succeeds in putting a stop to mining, it’s possible that miners in countries like Russia will continue to use fossil-fuel-based energy. While American miners may be serious in their desire to designate their operations as green energy, the larger Bitcoin economy may render this either uneconomical or insignificant.
Tesla temporarily halted Bitcoin car sales earlier this month due to worries regarding the cryptocurrency’s environmental effect. It announced in February that it had purchased the digital currency for the equivalent of $1.5 billion.
Execs from @ArgoBlockchain , @blockcap, @Core_Scientific, @GalaxyDigitalHQ, @HiveBlockchain, @hut8mining, @MarathonDH & @RiotBlockchain were present & decided to establish an organization to standardize energy reporting, pursue industry ESG goals, & educate+grow the marketplace.
— Michael Saylor (@michael_saylor) May 24, 2021
Michael Saylor, the CEO of MicroStrategy and a fervent Bitcoin supporter, said he led a meeting with Musk and Bitcoin mining companies Argo and Hut 8. He stated that they would “accelerate sustainability initiatives worldwide” regarding Bitcoin.
Great to be part of yesterday’s ground-breaking meeting led by @michaelsaylor with special guest @elonmusk, along with fellow miners. As a founding member of the Bitcoin Mining Council, Argo will push hard for sustainable mining and more transparency.
— Peter Wall (@PeterGWall) May 24, 2021
Peter Wall, CEO of Argo, confirmed his involvement with the Bitcoin Mining Council and affirmed a commitment towards sustainable mining.
How do you feel about this effort to curb Bitcoin’s carbon footprint?