Bitcoin Reaches Renewable Energy Milestone, Paving the Way for Tesla to Accept It as Payment Again
Bloomberg Intelligence analyst Jamie Coutts has announced that Bitcoin has surpassed the renewable energy threshold. This development suggests that Tesla may resume accepting Bitcoin as a form of payment, as Elon Musk mentioned in a tweet back in 2021.
The Background on Suspending Bitcoin Payments
Elon Musk, a well-known advocate for cryptocurrencies like Bitcoin, has often been held responsible for the cryptocurrency’s volatile price fluctuations, including its peak in 2021. In June 2021, Musk temporarily halted Tesla’s acceptance of Bitcoin payments until miners could prove that at least 50% of their energy usage came from clean sources.
According to Coutts, clean energy usage in Bitcoin mining now exceeds 50%, and the combination of decreasing emissions and increasing hash rates indicates that “Bitcoin mining is consuming more sustainable energy.” This milestone suggests that Tesla may soon reintroduce Bitcoin payments.
In Time for PayPal 2.0
While Musk has not addressed this topic directly on X (formerly Twitter), Forbes highlighted the timing of this announcement as interesting. It coincided with a warning from a U.S. Securities and Exchange Commission insider about Binance and a leak suggesting that Musk plans to transform X into a new version of PayPal that incorporates cryptocurrency payments.
Given Musk’s significant influence in the crypto community, any positive news associated with him could potentially cause a temporary spike in the market.
Hot Take: Bitcoin’s Renewable Energy Milestone Paves the Way for Tesla’s Crypto Adoption
Bloomberg Intelligence analyst Jamie Coutts has revealed that Bitcoin has achieved a significant milestone by surpassing the renewable energy threshold. This achievement opens the door for Tesla to resume accepting Bitcoin as a payment method. Elon Musk, a prominent supporter of cryptocurrencies, had temporarily suspended Bitcoin payments due to concerns about the environmental impact of mining. However, with clean energy usage in Bitcoin mining now exceeding 50%, Musk’s condition for reintroducing Bitcoin payments may be met. The timing of this announcement is particularly interesting, as it coincides with rumors of Musk considering transforming X into a new version of PayPal that incorporates cryptocurrency payments. With Musk’s influence in the crypto community, this development could have a positive impact on the market.