Did Tesla Bite Off More Bitcoin Than It Can Chew?

Tesla has captured headlines seemingly non-stop these days. With recording breaking numbers throughout the tumultuous year that was 2020, and the continued development of its impressive software, the EV giant seems to be flying high while it dominates the electric vehicle market. 

However, Tesla’s recent purchase of Bitcoin has critics quick to jump on the California-based automaker for not considering the environment before making dishing out $1.5 billion 

Last week, Tesla announced that it purchased $1.5 billion in Bitcoin, putting the world of cryptocurrency and its follower into a frenzy as Bitcoin skyrocketed to an all-time high. Tesla also announced its plans to accept the currency as a form of payment in exchange for services and products, in an SEC filing.

Now the automaker is under scrutiny for its decision to purchase the cryptocurrency and accept it as payment. All while trying to further the adoption of lower-CO2 alternatives to ICE vehicles.

Bitcoin uses “mining” to process transactions, and it can be very energy-intensive. The “mining” process is causing some critics to point fingers at Tesla saying the promotion of the cryptocurrency adds to its carbon footprint.

Ben Dear, CEO of the sustainable investment firm Osmosis Investment Management, told Reuters, “We are of course very concerned about the level of carbon dioxide emissions generated from bitcoin mining.” He went on to say he believes Tesla should disclose any and all energy consumption that is associated with its bitcoin ventures.

It seems a little extreme, and recent reports show Bitcoin’s evolution into one of the most eco-friendly cryptocurrencies you can buy. Some studies even showed “around 75% of Bitcoin mining was powered by renewable energy sources.” Although Bitcoin carries immense money-making potential and incredible benefits, it’s always wise to be aware of your cryptocurrency’s carbon footprint.

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