The cryptocurrency industry experienced disruption at 4:06 p.m. on Wednesday, May 12 when Elon Musk tweeted a message indicating that Tesla would no longer be accepting Bitcoin as a form of payment. The reason Musk took this new stance on accepting Bitcoin related to the amount of energy the cryptocurrency uses to create transactions.
To a large degree, I see his point of view and have recently produced an article on the impact cryptocurrency has on the environment. That being said, I am seeing a pattern across different forms of payment and the energy used to produce transactions.
It is clear that some digital transaction methods take less energy to process a payment compared to others, but an overall trend I am seeing is that the most popular methods are using the most energy. Since Bitcoin is currently the most mined and used cryptocurrency, it is currently taking the most energy to produce the interactions. The most popular debit and credit cards also will be producing a large amount of energy to process payments.
Mark Cuban shined some light on his method to resolving the pain point of Bitcoin using too much energy by accepting multiple forms of cryptocurrency.
My theory is that all major companies that process data, from cryptocurrency to digital media, should be transparent about their renewable energy intake, as well as goals to increase their renewable energy footprint over the upcoming decade. Major tech companies do provide these numbers and it is my theory that major cryptocurrency companies and mining operations should be reporting these statistics as well.
The solution is not only taking multiple forms of cryptocurrency but also supporting companies and projects that make renewable energy a priority. In addition, cryptocurrency is not the only industry that should be following this protocol.
I have been a supporter of cryptocurrency, Elon, Tesla, and protecting the environment for close to a decade. Currently, I could see how some think that it is hypocritical to support conservation of the environment, as well as digital currency. My goal is to report the solution to help bridge environmental awareness and options for investors.
The following videos via CNBC provide a unique point of view on this topic.