Tesla board member Kimbal Musk is the brother of CEO Elon Musk. He told TechCrunch onstage at the Ethereum Denver conference that the company had extreme misinformation on the ecological consequences of Bitcoin.
This happened when it was proclaimed last year that it would buy $1.5 billion in virtual currency. Additionally, it would enable proprietors to buy the business’s automobiles with the currency.
Kimbal’s Take
Kimbal Musk remarked that when Tesla invested in Bitcoin, they had been completely unaware of the environmental consequences. Bitcoin appeared to be a reliable store of wealth and a decent method to diversify investments. However, it did not take long after the acquisition for them to get a slew of notifications. These are informing them about the damage they were causing to the planet. According to him, Tesla is all about developing alternative energy futures, therefore they had misinformation when they made that choice.
While Tesla does not regret its Bitcoin buy, Kimbal Musk believes that the blockchain industry as a whole can evolve towards a more ecologically friendly network. He also stated that, although he may not approve of the environmental effects of cryptocurrency. Kimbal Musk appreciates what it is doing.
He also mentioned that his humanitarian organization, Big Green, had adopted a crypto-native DAO system of governance that ran on a less energy-intensive blockchain. As a result, his suggestion is for the sector to find out how to operate without negatively impacting the environment. Having this ecological impact, he believes, is simply not an option.
Bitcoin Buy Impact
Tesla’s move to purchase bitcoin last year sparked a significant uptrend for the virtual currency. Which was notably undone months later by the firm’s declaration. While it did not intend to sell its bitcoin instantly, it would no longer recognize bitcoin as payment for automobile orders.
Elon Musk, the founder of Tesla, stated that the company would not be selling any bitcoin. It furthermore intends to employ it for transactions as soon as mining shifts to more renewable power.
Even though there is still a lot of information missing about how extensively the Bitcoin mining infrastructure depends almost entirely on renewable energy sources. It is somehow evident how substantial the platform’s energy consumption is. According to Digiconomist’s energy tracker, the overall yearly energy footprint of Bitcoin mining activities has roughly doubled since Musk’s tweet in May. According to the site’s calculations, the Bitcoin network emits as much carbon into the environment as the nation of Kuwait does on a yearly basis.
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