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The long-running Bitcoin energy controversy resurfaced late Wednesday when Tesla CEO Elon Musk revealed that his company had halted Bitcoin vehicle transactions due to questions about its energy use. As predicted, several influential members of the community were swift to dismiss Musk’s claim, claiming that Bitcoin mining did not pose a threat to the environment.
For example, Michael Saylor, CEO of MicroStrategy, told Musk that the nett effect on fossil fuel use will be negative over time, while Anthony Pompliano of Pomp Investments said that 75 percent of miners use renewable energy. Finally, Nic Carter, in a game of praise-blame, pointed out that Tesla cars use the same grid electricity that Bitcoin has been using.
Pompliano, on the other hand, delivered a convincing speech that seemed to imply that Tesla’s announcement was just the first step in Musk and his team’s “marketing masterstroke.” Pomp speculated about what would happen next, saying,
“The company [Tesla] creates a Bitcoin mining hardware that is based on renewable power and launches it to the mass retailer.”
Tesla, in particular, is a renewable energy business that provides battery technology as well as other products. Its energy storage device, The Powerwall, recharges the battery using solar energy. According to Pompliano, the reserved power may be used to mine Bitcoin, earning miners who use The Powerwall handsome income. Pomp went on to say,
“This also would pave way for Tesla to tap into a brand new segment of customers — Bitcoiners — with a product that is already developed in a significant way.”
Envisioning the subsequent step that would follow, Pomp went on to say,
“The company claims they are helping to push the world to a more renewable energy future, including making Bitcoin more environmentally friendly.”
According to the crypto-proponent, Tesla could do so by releasing a modified version of the existing Powerwall, a vertically integrated refurbished Powerwall, or a whole new unit. In any case, this change will benefit the green mining industry.
In the short term, this ploy has only fueled the energy controversy and created havoc in the environment. Pompliano, for his part, finished by saying that if they were plotting anything similar, this was a good decision for Tesla in the long run. Given Elon Musk’s history of cryptocurrency, this may not be an outlandish possibility.