SUMMARY

Tesla’s potential resumption of Bitcoin payments depends on achieving sustainable mining practices. As Bitcoin mining surpasses 56% clean energy usage, questions about data reliability and rising competition remain. Meanwhile, Bitcoin’s increasing market integration, driven by ETF approvals, highlights its growing financial importance.

Bitcoin Mining Energy: Over 56% Comes from Clean Sources

According to Woocharts, 56.76% of the energy used in Bitcoin mining now comes from clean or sustainable sources. Since April 2021, the share of clean energy in BTC mining has shown steady growth. This measurement aligns with the Cambridge Centre for Alternative Finance’s definition of sustainability, which accounts for energy derived from wind, solar, hydro, and nuclear power used in crypto mining operations.

In recent years, Bitcoin mining companies like Riot Platforms and MARA Holdings have increased their investments in clean energy. However, the global energy crisis has driven up mining costs. To mitigate these challenges, many mining companies have been using their remaining capital to purchase Bitcoin directly.

Tesla’s Commitment to Bitcoin Payments

In February 2021, Tesla announced its decision to accept Bitcoin as a payment method. By March 2021, Bitcoin payments were officially enabled on Tesla’s U.S. website, sparking a surge in Bitcoin’s price. However, this arrangement was short-lived; by May 2021, Tesla suspended Bitcoin payments. Elon Musk cited the environmental concerns of Bitcoin mining’s reliance on fossil fuels, particularly coal and oil, as the reason. Tesla stated its intent to explore cryptocurrencies with lower energy consumption.

During the “The B Word” conference, Musk expressed a shift in perspective. He noted that Bitcoin appeared to be moving toward renewable energy usage and stated that Tesla would resume accepting Bitcoin once renewable energy usage in mining surpassed 50%.

Questions About Data Credibility

Despite Woocharts’ optimistic data, challenges remain. The credibility of Woocharts’ calculations and data sources is questionable, making it difficult to convince Musk or Tesla that the current state of Bitcoin mining has improved significantly. Furthermore, data indicating a 50% threshold was reportedly achieved as early as mid-2022, yet neither Musk nor Tesla has taken any action since.

Rising Competition in Bitcoin Mining

1.Bitcoin’s Limited Supply

The total supply of Bitcoin is capped at 21 million. As of now, the remaining supply available for mining is 1,196,888 BTC, while 19,803,112 BTC is already in circulation.

2.Mining Difficulty

According to CloverPool, Bitcoin mining difficulty reached a new record high of 109.78 T at block height 876,960 on December 30, 2024, following a 1.16% adjustment. The current network’s average hash rate stands at 754.42 EH/s.

3.Bitcoin Price Surge

Bitcoin’s price has seen significant growth throughout 2024. In January, the SEC approved 11 Bitcoin ETFs. As of today, the total net asset value of Bitcoin spot ETFs has reached $106.683 billion, with the ETF net asset ratio (compared to Bitcoin’s total market value) at 5.7%. Historical cumulative net inflows into these ETFs amount to $35.664 billion, further establishing Bitcoin’s presence in mainstream finance. Additionally, the April halving event was another major milestone, marking a significant precursor to price surges due to Bitcoin’s scarcity. In November, the U.S. presidential election added further momentum as Donald Trump shifted his stance on cryptocurrencies, promising to establish national strategic reserves and regulatory clarity for the sector. Furthermore, MicroStrategy’s continued accumulation of Bitcoin and its influence on other publicly traded companies also played a critical role in Bitcoin breaking the $100,000 mark.

4.Power Consumption of Mining Machines

The table below illustrates the power consumption of some of the most profitable Bitcoin mining machines. Due to their high energy consumption and cooling requirements, many miners have adopted water or oil cooling systems. However, air-cooled models like the S19j Pro, M50s, and S21 series (S21, S21+, S21XP, S21 Pro) remain popular due to their relatively lower prices.

CONCLUSION

While Bitcoin mining has made notable strides in transitioning to clean energy, several hurdles—including data credibility and rising competition—remain. Tesla’s potential resumption of Bitcoin payments hinges on both verifiable data and economic feasibility. With Bitcoin’s growing integration into mainstream finance, it remains to be seen whether these developments will align with Tesla’s sustainability goals.

FAQs on this

Why did Tesla stop accepting Bitcoin payments?

Tesla suspended Bitcoin payments in 2021 due to concerns over the environmental impact of Bitcoin mining, particularly its reliance on fossil fuels.

What conditions must be met for Tesla to accept Bitcoin again?

Elon Musk stated that Tesla would resume Bitcoin payments once mining operations use at least 50% renewable energy.

How has Bitcoin mining changed in terms of energy usage?

Recent reports indicate that over 56% of Bitcoin mining energy now comes from renewable sources, though the credibility of these claims is debated.

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Antminer AL1 Pro Alephium Miner (16.6Th/s)

$9850.00

Iceriver KS5L Kaspa Miner + hosting (12Th/s)

Iceriver KS0 ULTRA Kaspa Miner (400Gh/s)

Antminer AL1 Pro Alephium Miner (16.6Th/s)

Will Tesla Resume Accepting Bitcoin Payments?

Table of Contents

Bitcoin Mining Energy: Over 56% Comes from Clean Sources

Tesla’s Commitment to Bitcoin Payments

Questions About Data Credibility