The price of Bitcoin has bounced back after Elon Musk proposed the “Green” mining solution. It bounced back at the beginning of the week after falling to almost 50 per cent of its all-time high on Sunday. The latest dip was brought about by China announcing yet another crackdown on crypto mining, though more positive news in the space has helped boost the crypto market.
All it took was for Elon Musk to point out that cryptocurrencies come at a great cost to the environment, for all the hype and excitement to subside, common sense to prevail and a bit more attention be given to how much energy these crypto coins do consume. It was in March that Tesla had said they’d accept Bitcoin as a mode of payment for buying their electric cars. No longer. The reason—the increased energy usage as Bitcoins and cryptocurrencies are mined and transactions are done. The thing is, these digital currencies require really powerful computers in a mesh, and these require electricity.
The market rebound at the start of the week has been partly assisted by comments from Elon Musk that he has been in talks with bitcoin miners about renewable energy solutions, as well as news that hedge fund billionaire Ray Dalio has invested in bitcoin. The technology billionaire and crypto advocate revealed that he has met with bitcoin miners in North America about renewable operations – a trend that has increased significantly in recent years according to the latest data.
A number of prominent analysts remain optimistic about bitcoin’s prospects, with some speculating that the bull market is “just warming up”.