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Elon Musk wakes up to the oily properties of bitcoin antiquities


Elon Musk, founder of Tesla, recently got baptized “making”, Or the king of technology. A good moniker may be the “Wizard of Oz”.

The trader has an amazing ability to attract the strings of the crypto world. In February, stock prices plummeted when Musk revealed that the company owned it bought $ 1.5bn the value of cryptocurrency. Likewise the price of dogecoin following similar Delphic tweets.

But last week dogecoin falls when Musk agreed at an American toy show for the item to be “difficult”. And now bitcoin has fallen behind again yet another tweet, this time revealing that Tesla will no longer accept bitcoin for the purchase of electric vehicles. “We are concerned about the increasing use of oil in bitcoin mining and operations, especially coal,” Musk said.

Staff as well as the press , where, they have been showing the story for months. Two interesting statistics combine this problem.

First, it seems two-thirds of bitcoin has so far been dug up – computer-generated – in China, by users data center relying on coal-fired power plants. In fact, black connections are so strong that Alex Lipton, a crypto expert, has realized that commodity prices move when China’s coal mines crash.

Second, the $ 2tn crypto market has grown so fast that it is adding more power. Bitcoin mines, which make up half of all revenue, currently use the same amount of energy each year as the Netherlands did in 2019. Scientists be careful this threatens the intentions of Paris.

Bitcoin enthusiasts like businessman Anthony Scaramucci point out that statistics are a must-have and that traditional currencies are also a force for good.

So are other types of technology. As paper written by a former Google digital intelligence researcher, some of the AI ​​methods behind Google search and “She thinks she may need it as much power as an American airplane “.

Even with such caves, the truth is that carbon dioxide is a disgrace, not only for Tesla but also for the millennials who care about the green crisis. And this also highlights three major lessons for all retailers.

First, no one can ignore the environmental, cultural, and governmental pressures of today, even in the so-called ESG stocks. Tesla is found in many ESG books because investors have focused too much on electric cars and neglected some.

However, digital transparency now allows freedom fighters to monitor corporate events more accurately than ever before. This means that investors need to look around when praising companies, as ESG risks are not only strong or static and often affect the ever-changing trades.

Second – as well as leading from here – investors need to view professional negotiations as an example of this change. The fight is underway to address the carbon problems of bitcoin. Rocky Mountain Institute, pure white power soon agreed and UN officials and fintech leaders to find answers. One can incorporate changes in the crypto-environment system to reduce power consumption; last week a “green” cryptocurrency that uses less energy called Share was initiated.

Another option is to use green energy, for example to convert Chinese coal to power in Iceland. Lovers like Scaramucci think this could solve the problem if there is a registry that helps investors keep track of where the bitcoins came from.

Which idea might work is unclear. But the controversy may explain why Musk sent his tweet. And why former salesman Stanley Druckenmiller He said this week that it is not clear which currency will eventually dominate (assuming you think, as Druckenmiller does, crypto is here to be). Few people predicted 15 years ago that Facebook, not MySpace, would be dominating the social network.

The third point is legal. What Musk can do as a Wizard of Oz crypto, unpunished, is that the session is meaningless and is not well managed. Money makers now threat of seizure.

But if reports from the Bank for International Settlements, “most of the world’s regimes” have not put in place measures to curb money laundering, without disrupting the market. In addition there is a “significant variation in the interpretation of regional administrative rules”. In simple English, supervision is confusing.

Libertarians like this this way. In the same way can Musk. But if the crypto is too big – with any signal – it needs more to answer a charge and transparency. This may not be possible to meet the challenges of crypto adoption.

But the struggle for green standards, perhaps, could pave the way for this to provide opportunities for crypto lovers to get around. If so, this could be a significant factor in Musk’s tweet and the reason why investors and regulators are focusing on Chinese mining, all types of coal and computers.


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