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How Bitcoin Twitter Reacted to Elon Musk’s Energy FUD

Bitcoin

coinfomania.com 13 May 2021 09:41, UTC
  
Reading time: ~3 m

The crypto community was thrown into chaos when the billionaire CEO of Tesla, Elon Musk, dropped the bombshell that his electric car company will no longer accept bitcoin payments over energy concerns.

The news came less than three months after Tesla made its groundbreaking bitcoin purchase and started accepting bitcoin payments on its products.

The news was met with mixed reactions, with several bitcoin proponents and influencers voicing out their displeasure with the recent development.

Micheal Saylor, the CEO of the business intelligence and software company MicroStrategy, stated that a bitcoin transaction does not utilize any extra energy in addition to the one spent during mining activities.

Ironic because no incremental energy is used in a #bitcoin transaction. The energy is used to secure the crypto-asset network, and the net impact on fossil fuel consumption over time will be negative, all things considered.

— Michael Saylor (@michael_saylor) May 12, 2021

Another bitcoin proponent, Anthony Pompliano, the founder of Morgan Creek Digitals, also pointed out that several miners utilize various alternative energy sources that are not harmful to the ecosystem.

He noted that about 75% of bitcoin miners utilize renewable energy for their mining operations, constituting no danger to the environment.

Elon … you realize that 75% of miners use renewable energy, right?

This energy story has been debunked over and over again.

— Pomp 🌪 (@APompliano) May 12, 2021

Pompliano’s line of argument calls to mind an earlier study conducted by CounShares earlier in 2019, which revealed that 74% of bitcoin mining is done using renewable energy.

Some other crypto enthusiasts who could not come to terms with the news went on to search for any ulterior motives behind Tesla’s decision.

Oh what interesting and curious timing for Elon’s green washed tweet as Reuters reports Tesla is trying to get into the green credit market…. pic.twitter.com/wu5MbL06mU

— Adam Cochran (@adamscochran) May 13, 2021

Musk’s Tweet Affect Bitcoin Price

Similar to what happened after the announcement of its bitcoin purchase, Musk’s recent tweet affected bitcoin’s price.  This time, the effect was unfavorable.

Several bitcoin holders had liquidated their positions causing the largest cryptocurrency to plummet by 15% shortly after Musk’s tweet went viral.

At the time of writing, bitcoin is currently trading at $49,385.38, according to data from CoinMarketCap.

Clean Energy For Bitcoin

Bitcoin has often been criticized for its extreme use of electricity for mining activities, a situation that could potentially destroy the environment.

However, in December, the U.S.-based financial services firm, Square, had launched a $10 million initiative that is focused on promoting clean energy for bitcoin.

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