Elon Musk has revealed that SpaceX owns Bitcoin and that after examining the sustainability of BTC, Tesla could be close to accepting BTC payments again. Elon Musk, CEO of Tesla, said that his company SpaceX owns Bitcoin (BTC).
But Musk's other company Tesla, bought $ 1.5 billion of cryptocurrency earlier this year that sparked a large Bitcoin price rally, is still not yet officially announced how much Bitcoin he bought.
This rally came to an abrupt end after Tesla stopped taking the Bitcoin payments on consideration of environmental concerns, but in “The ₿ Word”—a virtual Bitcoin event—the erratic tech billionaire suggested that Tesla was about to accept cryptocurrency once again following promising signs that renewable energy used to mining was growing.
With Coin Metrics co-founder Nic Carter tells CNBC that BTC's fundamental principles are improving in terms of sustainability, the changing stories of Bitcoin's 'green' rally may be helpful.
Musk was joined by CEO Cathie Wood of Ark Invest, Jack Dorsey, CEO of the Twitter network, and Square Crypto's moderator, Steve Lee.
Musk revealed no further information on the purchase of SpaceX other than that:
“I do own Bitcoin; Tesla owns Bitcoin; SpaceX owns Bitcoin; and I do personally own a bit of Ethereum and Dogecoin of course.”
“We’re not selling any Bitcoin, nor am I selling anything personally or nor is SpaceX selling any Bitcoin.” He said.
This statement confirms the long-standing speculation that Bitcoin was added to its reserves by the space infrastructure company.
Anthony Scaramucci claimed in a tweet in mid March that he believed Musk didn't stop with just Tesla’s purchase for crypto.
During the event, Musk wore a t-shirt with BTC on it and seemed optimistic about bitcoin, also known as digital gold, as he said he owns "a lot more bitcoins than Ether or DOGE."
Musk has said the use of renewable energy by BTC mining "seems to be a positive trend," referring to the recent closure in China of coal mining stations.
“I want to do a little more diligence to confirm that the percentage of renewable energy usage is most likely at or above 50% and that there is a trend towards increasing that number. If so, Tesla will resume accepting Bitcoin,” he said.
Nic Carter talks about CNBC mining
Carter said he was 'glad' that Musk had started to assess the realities on the ground because they are very favorable about Musk's latest comments with CNBC's fast money on Thursday.
Carter echoed Musk's views on BTC mining from China, noting that the rate in Chinese hatching was strongly influenced by coal-generated energy and "anonymous miners" in that region lacked transparency.
“The fundamentals are getting better in terms of the sustainability of Bitcoin,” Carter said.
The co-founder of Coin Metrics pointed to the increased likelihood and willingness of miners in the US and Canadian to use sustainable practices.
“A lot of that [mining in China] has been replaced by mining in Canada and the U.S., where miners are much more sustainably focused. We’re also seeing a lot more disclosure from miners. 32% of the hash rate joined a council, the Bitcoin Mining Council, and they produce quarterly disclosures now,” he said.
Carter mentioned the recent study conducted by the Bitcoin Mining Council that surveyed 32% of BTC.net's miners.
The survey estimated that the energy mix in Q2 was 67% sustainable.
It is unclear whether Musk took the appropriate diligence in this study, however, because he relied on self-reported information from a limited group of only three surveys.
Carter admitted that BTC's sustainability cannot be fully verified until the world sees where most miners establish shops in the wake of the Chinese exodus.
In his own opinion, however, he declared:
“I think Bitcoin is perfectly suitable for payments today, and of course the environmental costs are offset by its enormous utility.”
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