Tesla started taking Bitcoin payments in February 2021, joining Microsoft, PayPal, Starbucks, Overstock, Twitch, and PayPal as industry leaders. We were undoubtedly unhappy when Tesla stated in May that it would no longer take bitcoin and would only accept fiat money.
Many articles have been written on the problems with this currency, including how it supports organized crime, is untraceable, and has an adverse effect on the environment. Even yet, we believe a full ban on fiat money would be disproportionate given that it is mostly used for criminal activity, is almost untraceable, and annually destroys thousands of trees. We are baffled as to why there seems to be a double standard for bitcoin, though.
WE UNDERSTAND THE ENVIRONMENTAL IMPACT AS ALIGNED PARTIES:
Elon wrote the following when Tesla stopped taking bitcoin: “Tesla’s goal is to raise awareness of renewable energy sources. We can’t be the business that does that and neglects to do due research about Bitcoin’s energy usage.” As you are aware, many Tesla owners also possess bitcoin, and although the Bitcoin community is large, many of its members share the aforementioned concerns. Bitcoin users also want to “accelerate […] sustainable energy.” Further, many (even most) do think “appropriate diligence” is prudent with regards to bitcoin’s energy usage.
We find it surprising that these reasons are raised in opposition to bitcoin when the research suggests that it really speeds up the adoption of sustainable energy sources. Real-time power production by renewable energy companies frequently exceeds local demand, making it costly to provide clean electricity continually and discouraging investment in these projects. However, research shows that by incorporating bitcoin mining into their operations, renewable projects may considerably boost revenues. Bitcoin may be mined anywhere, at any time, allowing businesses to mine it when grid demand is satisfied and energy prices are low while also selling energy when demand is high.
This makes renewable energy operations viable when they may not have been otherwise, encouraging more investment in renewable technology and accelerating the R&D required to make renewables as affordable as feasible. Bitcoin may thus be one of the most important technologies to support the growth of sustainable energy.