He believes that the advantages of the new technology vastly outweigh its environmental costs in the long term.

He also points out that it’s important to remember that not all digital currencies are the same. BSV’s scaling capacity and bigger block size mean that many more transactions can take place per second, and therefore energy per transaction is lower.

“The difference with Bitcoin SV is that it is just wildly more efficient,” says Zach. This was evident at CoinGeek Zurich when nChain CTO Steve Shadders took part in a live demonstration showing node software handling over 50,000 transactions per second (TPS), something he repeated backstage where a throughput of 100,000 TPS was achieved. This contrasts with BTC which can process just seven to nine TPS.

There have been debate about the role bitcoin plays in the increasing use of fossils fuels, especially coal, which produces the highest emissions. Fossil fuels is used to mine bitcoin to make it available for the cryptocurrency market.

In a bid to discourage the continued use, Musk and Tesla have decided to discontinue the acceptance of bitcoin as payment, “Cryptocurrency is a good idea on many levels, and we believe it has a promising future, but this can not come at a great loss to the environment.

“Tesla will not be selling any bitcoin, and we intend to use it for transactions as soon as mining transitions into more sustainable energy.” Musk said.

The statement seen by Ripples Nigeria, stated that Tesla is weighing cryptocurrency options to replace bitcoin.

So, how would this motivate Tesla to stop accepting payment in Bitcoin? Well, environmental regulators may not be very fond of Bitcoin’s energy use. Tesla is currently applying with the EPA for more RECs under the new Biden administration, which could have had some level of impact on Tesla’s Bitcoin decision.

The members of the Environmental Protection Agency are comprised of high-ranking individuals of both public and private organizations or companies, most of which are geared toward some level of environmental preservation and protection.

Tesla and Musk’s future with Bitcoin, or really any cryptocurrency, is still very much unknown.
The only clear facts are that Tesla still holds Bitcoin and they now accept Dogecoin for cars. With how bumpy Tesla’s crypto road has been so far, there will likely be more surprises ahead.

Musk had tweeted just a single word “True” on April 22, 2021.

That word was in response to Twitter founder’s argument in support of bitcoin being a key driver for renewable energy’s future. Jack Dorsey stated that bitcoin incentivises renewable energy, and Musk tweeted in agreement.

That word has now become the tool used by other bitcoin supporters to tackle Musk’s decision to drop bitcoin as a payment option.
Bitcoin holders are asking why he made the comment in April and changed his stance a month after.

Some part of the bitcoin community believe the decision by Musk to drop bitcoin as payment option is a move to direct investors to Dogecoin, which is the new favourite of the billionaire.

Hours before the announcement was made, Musk had asked his followers on Twitter if Tesla should accept Dogecoin as payment.

Tesla Stops Accepting Bitcoin

On May 12th, Musk unexpectedly posted a tweet that announced Tesla would no longer accept Bitcoin for its cars as it is “concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of all.”

This came shortly after he had agreed with Dorsey that Bitcoin could have the potential to push the use of renewables faster.

The post lit Twitter aflame with confusion, anger and frustration. It also dropped Bitcoin’s price from around $58,000 to its lowest trough since of just over $42,000.

Musk took another step in the argument and said, “Hey cryptocurrency “experts”, ever heard of PayPal? It’s possible … maybe … that I know than you realize about how money works.”

But this confused people even further as Bitcoin’s purpose was to do away with centralized payments systems such as PayPal that have the authority to freeze accounts.

“PayPal, LMAO. You mean the company which froze Wikileaks account? The company which routinely censors payments?,” asked Peter McCormack in rebuttal.

Musk did eventually clear the air as speculation that Tesla would now sell its Bitcoin started to ramp up.

“To clarify speculation, Tesla has not sold any Bitcoin,” said Musk in a tweet.

Was There an Ulterior Motive?

Many began to speculate on the true motive behind the reversal in Tesla’s Bitcoin acceptance.

That’s about to change,” said Steyn.

In Q2 of 2020, Tesla tripled its revenue from RECs from a year prior to $428 million. Garrett Nelson, a CFRA equities analyst, said that “They would not have posted a profit without that revenue.

It’s the number one factor why Tesla beat analyst estimates by so much.”

In the first quarter of 2021, Tesla took in $518 million from RECs. In the past, Tesla has made large profits selling RECs to companies that need to offset their emissions.
But with all of these car manufacturers making moves into the electronic vehicle space, they will require fewer and fewer RECs.

While these RECs only represent 6% of Tesla’s profits, the sale of RECs comes at no cost, making it 100% profitable. According to an article from Fortune, Tesla would not have been profitable on a net basis in the last six quarters without RECs.

For a bad actor to take control of the network, they would need to make up for over 50% of Bitcoin’s computing power. With how much cumulative power exists in Bitcoin’s network today, this would be near, if not entirely, impossible.

Bitcoin’s intense use of energy for security reasons hasn’t stopped environmentalist concerns over this massive expenditure of energy.

The main argument against Bitcoin is the sheer quantity of power it uses. Bitcoin uses amounts of energy comparable to entire nations like Sweden, Argentina and others.

To counter these concerns, members of the crypto industry have researched the types of energy that Bitcoin uses rather than just focusing on the amount it uses.

Governments and legacy financial systems all over the world are discovering that it’s not easy being green. And Bitcoin is no exception. Elon Musk famously reversed his decision to accept BTC as payment for Tesla in May, citing environmental concerns as the reason.

But many in the Bitcoin SV world are confident that it can and will be eco-friendly.

Zach Resnick, Managing Partner of venture capital fund Unbounded Capital, is one of many unconcerned BSVers. “We would argue that Bitcoin is perhaps one of the most eco-friendly technologies ever created,” he says.

Zach argues that Bitcoin’s design incentivises miners to find cheap energy to maximise their profits. As renewables are cheaper, they are encouraged to find or create clean, renewable sources of energy.

BSV ecosystem fund. Comparing the experience with his previous jobs (as a poker player and jazz musician), he jokes that he faces more derision in his current line of work.

But this is changing, according to Zach. He explains that more and more investors are seeing the value of BSV and are directly reaching out to Zach without him needing to get in touch to explain the benefits.

Speaking at the recent CoinGeek conference in Zurich, Zach was certainly confident about BSV’s future, saying “we’re really excited about what we’re seeing in the space today and feel very grateful to be here today at CoinGeek and to be meeting so many of the entrepreneurs.”

Hear the whole of Zach Resnick’s interview in this week’s CoinGeek Conversations podcast or catch up with other recent episodes:

You can also watch the podcast video on YouTube.

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