{"id":456508,"date":"2021-02-12T12:15:04","date_gmt":"2021-02-12T12:15:04","guid":{"rendered":"https:\/\/uniquehot.com\/?p=456508"},"modified":"2024-06-11T09:09:23","modified_gmt":"2024-06-11T09:09:23","slug":"bbc-says-teslas-bitcoin-buy-weakens-its-green-credentials","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/bbc-says-teslas-bitcoin-buy-weakens-its-green-credentials\/","title":{"rendered":"BBC Says Tesla’s Bitcoin Buy Weakens Its Green Credentials"},"content":{"rendered":"
Tesla announced on Monday it had purchased $1.5bn<\/a> worth of Bitcoin, which boosted the entire cryptocurrency sector. However, some criticized the move due to the added financial risk<\/a> this imposed on the automaker.<\/p>\n Today the BBC<\/a> joined in with the criticism by saying this undermines Tesla’s environmental credentials.<\/p>\n “Critics say electric-car firm Tesla’s decision to invest heavily in Bitcoin undermines its environmental image.”<\/p>\n<\/div>\n<\/div>\n<\/blockquote>\n The BBC article<\/a> pulls data from research conducted by The Cambridge Centre for Alternative Finance. Their work estimates that, over a year, Bitcoin mining consumes more electricity than Argentina.<\/p>\n “Cambridge researchers say it consumes around 121.36 terawatt-hours (TWh) a year – and is unlikely to fall unless the value of the currency slumps.”<\/p><\/blockquote>\n <\/p>\n Unfortunately, as is often the case with mainstream media reporting on cryptocurrency, there are some slight misconceptions in the article. This detracts from the underlying message of the piece.<\/p>\n One example relates to the block writing process, which the author likens to a lottery in which miners occasionally receive small amounts of Bitcoin. However, a more fitting analogy describes Bitcoin as a race in which the winner always receives 6.25 BTC.<\/p>\n “As a reward, miners occasionally receive small amounts of Bitcoin in what is often likened to a lottery.<\/p><\/blockquote>\n What’s more, the article quotes blockchain author David Gerard, who makes several disparaging points about the leading cryptocurrency, including its wastefulness. He also criticizes Musk by saying he used $1.5bn of taxpayer money to buy Bitcoin. Adding that BTC miners primarily use coal to power their mining rigs.<\/p>\n “Elon Musk has thrown away a lot of Tesla’s good work promoting energy transition. This is very bad… I don’t know how he can walk this back effectively.<\/p>\n Tesla got $1.5bn in environmental subsidies in 2020, funded by the taxpayer. It turned around and spent $1.5bn on Bitcoin, which is mostly mined with electricity from coal. Their subsidy needs to be examined.<\/p><\/blockquote>\n Research shows that since 2007, Tesla received $2.4bn<\/a> in state subsidies and federal grants. But nothing since 2015. The firm also took on a $465.5mn<\/a> Advanced Technology Vehicles Manufacturing (ATVM) loan in 2010, which was paid back in full with interest before the stipulated term.<\/p>\n For comparison, Ford has received $33.49bn in state subsidies and federal grants. They also borrowed $5.9bn under the ATVM program and have yet to pay it back.<\/p>\n The Bitcoin Energy Consumption Index<\/a> (BECI) gives a different take on Bitcoin’s energy profile. It claims that 70% of Bitcoin miners are located in China, with most miners found in the Sichuan province.<\/p>\n\n
Tesla Comes Under Fire From The BBC<\/h2>\n
The Truth About Bitcoin’s Reliance on Coal<\/h2>\n