{"id":288898,"date":"2021-05-13T07:37:14","date_gmt":"2021-05-13T11:37:14","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=288898"},"modified":"2021-06-03T09:19:15","modified_gmt":"2021-06-03T13:19:15","slug":"tesla-and-bitcoin-7-reasons-why-elon-musk-is-wrong","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/tesla-and-bitcoin-7-reasons-why-elon-musk-is-wrong","title":{"rendered":"Tesla and Bitcoin: 7 Reasons Why Elon Musk is Wrong, Is It Time to Buy?"},"content":{"rendered":"

On May 13, Elon Musk tweeted that Tesla will no longer accept Bitcoin (BTC)<\/a> payments. According to Musk, Bitcoin mining is degrading our environment because of the high amounts of fossil fuels used, especially coal.<\/p>\n

Following Musk’s announcement, the price of BTC crashed from $55,000 to below $47,000. However, the coin has since recovered slightly and is now trading around the $50,000 mark.<\/p>\n

Staunch Bitcoin supporters have strongly criticised Musk’s abrupt turnaround, stating that the CEO is totally wrong on this issue. Here’s their reasons:<\/p>\n

1. Bitcoin mining is adopting renewable energy<\/h2>\n

Anthony Pompliano, the founder of Morgan Creek Digital, responded to Musk’s news, saying that 75% of Bitcoin mining is carried out using renewable energy sources.<\/p>\n

Pompliano’s argument may be based on the 2020 University of Cambridge study<\/a> that stated 76% of BTC miners used electricity generated from renewable energy sources. The study also indicated that 62% of miners used hydroelectricity, which has very little impact on the environment.<\/p>\n

2. BTC mining critics usually point out to China<\/h2>\n

Critics of Bitcoin mining usually base their argument on China, where two-thirds of the electricity used to mine BTC comes from harmful coal. Most of Tesla’s sales are in the US and Europe where mining is mostly from renewables, so if Elon Musk was being truly ethical he should have banned the use of Bitcoin mined from environment-unfriendly coal and endorsed clean BTC.<\/p>\n

Buy Bitcoin Now<\/span><\/a><\/div>\n

 <\/p>\n

3. Musk has earlier endorsed Bitcoin mining<\/h2>\n

Musk’s recent decision to suspend BTC payments over environmental concerns contradicts his earlier stand in April. On April 21, Musk agreed with a tweet by Square’s Jack Dorsey stating that Bitcoin mining ‘incentivizes renewable energy.’<\/p>\n

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#bitcoin<\/a> incentivizes renewable energy https:\/\/t.co\/KCe5bwdVs4<\/a><\/p>\n

— jack (@jack) April 21, 2021<\/a><\/p><\/blockquote>\n