Will Elon Musk and Tesla accept Bitcoin payments again?

Bitcoin, the world's largest cryptocurrency, has just reached an important milestone in its “greening” journey.

According to the latest report, Bitcoin mining now uses 56.76% of renewable energy, surpassing the 50% threshold Tesla set in 2021, as a condition for the company to accept Bitcoin as a payment method.

Elon Musk's promise and the future of Bitcoin at Tesla

The story begins in 2021, when Elon Musk's Tesla surprised by buying $1.5 billion worth of Bitcoin and announced its acceptance of the currency as a payment method for electric vehicles.

However, only a short time later, Tesla reversed the decision, stopping accepting Bitcoin citing concerns about the environmental impact of Bitcoin mining, especially the large carbon emissions from the use of fossil energy.

In a June 2021 Twitter post, Elon Musk made a promise: Tesla will continue to accept Bitcoin when mining the currency reaches about 50% clean energy use. The statement sparked a wave of heated debate about the sustainability of Bitcoin and its impact on the environment.

With the share of clean energy use in Bitcoin mining now past the 50% threshold, the question is whether Elon Musk will keep his promises. Will Tesla once again embrace Bitcoin, motivate other businesses to follow suit and promote Bitcoin adoption on a global scale?

Definition of “Clean Energy” and Measurement Methods

To better understand the 56.76% figure and what it means, it is necessary to clarify the definition of “clean energy” in this context. Woocharts uses the definition of Cambridge Alternative Finance Centre (CCAF), which includes energy sources such as:

• Wind Power:Generated from wind power through wind turbines.
• Solar Energy:Convert sunlight into electricity through solar panels.
• Hydropower: Harness energy from streams of water, usually through hydroelectric dams.
• Nuclear Energy: Although controversial, nuclear energy is considered a low-carbon energy source.

Woocharts calculates the percentage of clean energy used in Bitcoin mining based on data on these energy sources. However, this method of measurement also has certain limitations, and there is still much debate about its accuracy.

Bitcoin Mining Trend with Renewable Energy

Besides data from Woocharts, reality shows that many Bitcoin mining companies are actively investing in clean energy and diversifying their operations.

Companies like Riot Platforms and MARA Holdings are leading the trend, not only by using renewable energy but also through the purchase of Bitcoin to protect capital and benefit from the currency's growth.

In addition, the trend towards the greening of Bitcoin is also supported by many countries, turning to the mining of Bitcoin with renewable energy, for example:

• El Salvador: Bitcoin mining using geothermal energy from volcanoes.
• Iceland: Became Bitcoin mining “paradise” thanks to abundant hydroelectric power.
• Kanada:Leverage excess hydropower for Bitcoin mining farms.
• USA: States such as Texas and Kentucky attract investment in Bitcoin mining with abundant wind and solar energy sources.

The use of clean energy in Bitcoin mining reached 56.76% is a positive signal, indicating that the cryptocurrency industry is working towards sustainable development. However, there are still many challenges ahead, including improving transparency in measurement and promoting the adoption of clean energy on a wider scale.

Currently, Elon Musk has a close relationship with the US government, even joining the Government-created Government Efficiency Committee (DOGE) as an advisor on cryptocurrencies.

Will this new position of Elon Musk promote pro-crypto policies that facilitate Bitcoin and other digital assets? And will Tesla, under the leadership of Elon Musk, take more aggressive steps in the application and support of Bitcoin in particular and the cryptocurrency market in general?