Musk on Wednesday said Tesla
would not sell any bitcoin, and intends to use bitcoin
for transactions as soon as mining transitions to more sustainable energy.
“We are also looking at other cryptocurrencies that use <1 per cent of bitcoin's energy/transaction,” Musk said.
Musk said in March Tesla that customers can buy its electric vehicles with bitcoin. The digital currency is created when high-powered computers compete against other machines to solve complex mathematical puzzles, an energy-intensive process that currently often relies on electricity generated with fossil fuels, particularly coal. At current rates, such bitcoin mining devours about the same amount of energy annually as the Netherlands did in 2019, the latest available data from the University of Cambridge and the International
Energy Agency shows. Some investors cast doubt on Tesla's plans months ago.
“We are of course very concerned about the level of CO2 emissions generated from bitcoin mining,” said Ben Dear, CEO of Osmosis Investment Management, a sustainable investor managing around $2.2 billion in assets that holds Tesla stock in several portfolios, in February, shortly after Tesla's holdings became public.
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