Tesla CEO Elon Musk first revealed that his company SpaceX owns Bitcoin (BTC).
The company has yet to officially announce how much Bitcoin it has purchased, but Musk’s other company Tesla bought $ 1.5 billion in cryptocurrency earlier this year, which sparked a significant rise in Bitcoin prices.
This rally came to an abrupt end after Tesla stopped receiving Bitcoin payments due to environmental concerns, but speaking during “The ₿ Word” – a virtual Bitcoin (BTC) event – the erratic tech billionaire suggested that Tesla was about to accept cryptocurrency again. following promising signs, the percentage of renewable energy used for mining was increasing.
The shifting narrative that Bitcoin is going ‘green’ may help jumpstart a rally, Coin Metrics co-founder Nic Carter telling UKTN hours ago that BTC’s fundamentals are improving in terms of sustainability.
Musk appeared alongside Ark Invest CEO Cathie Wood and Twitter CEO Jack Dorsey and Square Crypto moderator Steve Lee. Musk didn’t reveal any additional details about the SpaceX purchase other than saying:
“I own Bitcoin, Tesla owns Bitcoin, SpaceX owns Bitcoin, and I personally own some Ethereum and of course Dogecoin.”
He added that: “We don’t sell any Bitcoin, I don’t sell anything personally, or SpaceX doesn’t sell any Bitcoin.”
The statement confirms long-standing speculation that the space infrastructure company was adding Bitcoin to its reserves. Mid-March, Anthony Scaramucci claimed in a Tweet this he thought Musk didn’t stop at buying Tesla alone.
Elon Musk didn’t stop with Tesla. I understand that SpaceX owns #bitcoin on its balance sheet. @Elon Musk holds over $ 5 billion in #bitcoin via Tesla, SpaceX and personally. No living person has done more to protect the planet from climate change. (1/2)
– Anthony Scaramucci (@Scaramucci) March 19, 2021
During the event, Musk donned a BTC-themed t-shirt and appeared relatively optimistic about the future of digital gold as he said he owns “a lot more Bitcoin than he has. Ether or DOGE “.
– The wolf of all streets (@scottmelker) July 21, 2021
Musk said there “appears to be a positive trend” in the use of renewables for BTC mining, citing the recent shutdown of coal-fired mining plants in China.
“I want to do a little more diligence to confirm that the percentage of renewable energy use is most likely equal to or greater than 50% and that there is a tendency for that number to increase. If so, Tesla will start accepting Bitcoin again, ”he said.
Nic Carter discusses mining on UKTN
Speaking about Musk’s last comments with UKTN’s Fast Money on July 22, Carter said he was “happy” that Musk has started assessing the “facts on the ground because they are very favorable.”
Carter echoed Musk’s sentiments about China-based BTC mining, noting that the “Chinese hash rate was heavily influenced by the energy produced by coal” and that there had been a lack of transparency of the share of “anonymous minors” in this region.
“The fundamentals are improving in terms of Bitcoin’s sustainability,” Carter said. The Coinmetrics co-founder pointed out that miners in the United States and Canada are more likely to use sustainable practices and are more willing to disclose information.
“A lot of that [mining in China] has been replaced by mining in Canada and the United States, where miners are much more focused on sustainable development. We’re also seeing a lot more disclosures from miners, 32% of the hash rate has joined a board, the Bitcoin Mining Council, and they’re now producing quarterly disclosures, ”he said.
Related: Bitcoin mining difficulty decreases for fourth consecutive time
Carter referred to the recent Bitcoin Mining Council (BMC) study which surveyed 32% of miners on the BTC.network. The survey produced an estimate of a sustainable energy mix of 67% in the second quarter.
It is not clear whether Musk considered this investigation as part of his due diligence, as it relied on self-reported data from a limited set of three survey questions.
Carter conceded that the sustainability of BTC won’t be fully verifiable until the world sees where the majority of miners are settling after the exodus from China. However, in his opinion, he said that:
“I think Bitcoin is perfectly suited for payments today, and of course the environmental costs are outweighed by its enormous utility.”