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Tesla’s hunt for most sustainable cryptocurrency

Source: The Verge

Written By: Rahul of MEXC Global

How it all started and why are we talking about this now?

The recent news about Tesla not accepting Bitcoin as one of their payment methods has caused enormous volatility in the market, mostly downwards.

Having said that Elon Musk did send a follow-up tweet clarifying his stance on crypto:

He is partially correct in expressing his remorse over energy consumption, However, it is mere ignorance to contemplate that 100% of the mining is done by electricity produced using Fossil fuels or Coal. In fact, if you look at the numbers 65% of global Bitcoin mining happens in China, followed by the USA at 7.24%

Upon further research, it is confirmed that around 50% of China’s electricity is generated by alternate resources such as Hydro Power (16.3%), Wind (10.4%) & Solar energy(10.2%), Natural gases(4.5%), and other (5.6%) means of power generation(cc: Wikipedia). China also takes lead being the largest hydroelectric power generating country in the world, followed by Canada & Brazil (Source: Statista)

Having understood the production of electricity & Now let us look at the consumption of power in mining let us further explore this subject.

There are a lot of crypto pundits who have gone as far as comparing cryptos energy consumption to that of banking sectors and stating how the banking sector is consuming 100x more power than cryptocurrencies.

However, this is not the time to point fingers, as we are all in this together. Our joint effort to make this planet earth more sustainable will result in a better future for our next generations.

Before we start comparing Bitcoin with other cryptos, let us look at what is Bitcoin’s global energy consumption rates are (cc:https://cbeci.org/)

Bitcoin Energy Consumption

Bitcoin mining relies on a “Proof of Work” (PoW) system which involves complex calculations and resolving multiple algorithms before a single successful Bitcoin is produced. On the other hand, cryptos that rely on “Proof of Stake/ Storage” (PoS) consume a minuscule amount of energy when compared to that of Bitcoin.

With the recent growth & increasing prices of cryptocurrencies, energy consumption has increased enormously.

For E.g: in May 2016 BTC’s global energy consumption was around 6.51 TWh*, compared to that of May 2021 reaching its all-time high in global energy consumption was 148..46 TWh. That is an increment of 2180.50% of global energy consumption. Having said that our shift from fossil fuels to alternative sources of producing electricity has also been the highest in the last 3 years.

From 2018 to 2020 the global electricity production by Coal has reduced by 7% and that of Renewable resources has increased in a similar manner. (cc:ourworldindata.org)

*1 TWh = 1 terawatt hour (TWh) = 1 trillion watt-hours. 1 gigawatt hour = 1 million kilowatt hours

Having understood the production & consumption in bitcoin mining, Tesla’s interest in alternate crypto currencies is increasing. It is no secret, Doge still remains their number one favorite cryptocurrency.

Elon even took a step further by meeting the developers of Dogecoin and is working on making it more mainstream crypto. Started as a meme token in 2013, let’s see below how DogeCoin energy consumption rates compared to that of Bitcoin in the following article the shares the “Top 10 Sustainable Cryptocurrencies you can trade on MEXC Global”

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Founded in 2018, MEXC Global is a centralized exchange that employs a high-performance mega-transaction matching technology. The CEX platform is run by a team of professionals with extensive financial industries and blockchain technology experience.

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MEXC Global

MEXC Global

Founded in 2018, MEXC Global is a centralized exchange that employs a high-performance mega-transaction matching technology. Visit us at https://www.mexc.com/

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