Recent reports suggest that over half of the energy currently used for Bitcoin mining is from renewable sources, thanks to the departure of Bitcoin miners from China due to its stringent ban on cryptocurrency mining. This development follows an earlier assertion by Elon Musk, Tesla’s CEO, that his company would accept Bitcoin payments once an approximately 50% clean energy usage level in mining was achieved.
Findings released by Bloomberg analyst Jamie Coutts on Sept 14 highlight the emerging trend towards green energy usage in Bitcoin mining. This change is credited to China circumventing its own mining ban and nations utilizing renewable sources for mining to capitalize on surplus energy. Included in this new trend are countries like El Salvador, Bhutan, Oman and the United Arab Emirates that are investing in Bitcoin mining, which is also serving to drive widespread adoption of the digital currency.
In a surprise turn in May 2021, Elon Musk announced Tesla’s decision to suspend Bitcoin payments, attributing the move to an increasing reliance on fossil fuels for Bitcoin mining and transactions. Though acknowledging the positive trend toward cleaner energy sources, Musk has yet to revise Tesla’s policy on Bitcoin payments despite the marked growth of renewable energy usage in mining that appears to meet his requirement. To date, there has been no public indication from Musk about reinstating Bitcoin transactions at Tesla, even as the digital currency’s value continues to grow, hitting $26,572, a 2% increase in the last week.