Elon Musk is wrong with controversial bitcoin statements

Elon Musk is wrong with controversial bitcoin statements

Universal Genius Elon Musk has violently embarrassed himself with his statements about bitcoin and made it clear that he does not understand bitcoin. Someone can also accuse him of hypocrisy. But let’s take a step back and see how the founders of Tesla were exposed.

Disclaimer: This article is a guest post. We would like to point out that the opinion expressed does not necessarily correspond to the BTC-ECHO.

in one Tweet Musk announced that Tesla would surprisingly discontinue bitcoin as a payment option – only one month after the electric car manufacturer activated the function. Earlier, Tesla created a stir in the cryptocurrency sector in early February, when the company invested $ 1.5 billion in bitcoin.

So now U-turn. Musk cited high “energy costs per transaction” and the associated waste of fossil fuels as the reason for the move away from bitcoin. Simultaneously, Musk revealed that he had no understanding of bitcoin. So time to give a little tuition to the Tesla Boss.

Bitcoin tuition

Starting from the most important point: the power source of mining. 78% of the energy requirement of bitcoin is already generated from renewable energy. To achieve the highest possible margin, bitcoin miners are looking for cheap energy sources, such as geothermal, wind, solar or water energy. Bitcoin is moving away from fossil fuels and towards sustainable and natural electricity.

A look at electricity consumption also shows that Bitcoin has a marginal need for energy compared to other financial systems. For example, the banking system requires approximately 2.34 billion gigajoules (GJ) per year to function. The annual electricity consumption of bitcoin is 183 million GJ, that is, the twelfth of what the world’s large financial institutions spend every year. Too Galaxy typeIn one study, l estimated that electricity consumption in the banking sector would be higher than that of bitcoin.

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Another drawback to Musk’s tweet is the statement regarding the transaction. Bitcoin does not require much electricity, as there are more transfers. Too much, the necessary energy is used to secure the network, completely independent of the number of transactions!

In general, it is questionable whether Musk is allowed to be an ethical leader in terms of energy consumption and sustainability. Because Tesla’s electric motors, batteries and touchscreens are made of raw materials such as lithium and cobalt, not by air and love. The background of extraction of these resources is well known. Then CO. is2– Emissions that Musk’s SpaceX rockets are due to every take-off and landing.

Following his Twitter antics, the Tesla boss’s image in the crypto community has changed. Away from the famous hero towards Bogiman. For rehabilitation, Elon Musk must first admit that he was wrong about bitcoin.

About the Author

Mark Frederick Spiegel is the bestselling author, financial expert, sought-after speaker, thinker, independent spirit and founder of Friedrich Vermögenschischerung GmbH, a fee-based consultancy for private individuals and companies. In his new guest comment, he relates what Elon Musk said about bitcoin.

Mark Frederick’s new bestseller: Greatest opportunity ever – what we need to learn from the crisis now and how you can learn from the biggest wormOGene transfer benefits humanity

more information https://friedrich-partner.de Also on Twitter and Instagram: @ marcfriedrich7

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