Musk s mixed messages on bitcoin stoke anxieties about cryptos in Corporate America
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Bitcoin tumbles below US$46,000 amid aftershocks from Musk s blast
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Single-minded attack
Musk posted a chart on Twitter from the University of Cambridge showing Bitcoin s electricity consumption has skyrocketed this year, extending his criticism of crypto mining for using fossil fuels. Bitcoin is also a manifestation of the value of the internet, and hence it stands to reason that social media and the cult of celebrity has, and will continue to have, an effect on driving demand, said Stephen Kelso, head of markets at ITI Capital.
Mining the token consumes 66 times more electricity than it did back in late 2015, according to a recent Citigroup Inc. report. Musk signaled on Wednesday that Tesla might accept other cryptocurrencies if they are less energy intensive, and said the company won t sell any of its Bitcoin. In more recent posts he said he s working with Dogecoin developers to improve system transaction efficiency , describing the effort as potentially promising .
It’s unclear what prompted the Bitcoin decision. Musk and Zachary Kirkhorn, Tesla’s chief financial officer, didn’t immediately respond to an email inquiry for comment. Kirkhorn in March added the tongue-in-cheek title “Master of Coin,” according to a regulatory filing.
Still, Musk’s tweets raise questions about Bitcoin’s attractiveness as an investment at a time when institutional firms are increasingly vocal about climate change and environmental issues.
“Surely he would have done his diligence prior to accepting Bitcoin?” said Nic Carter, founding partner at Castle Island Ventures, and a leading voice among defenders of Bitcoin’s energy use. “Very odd and confusing to see this quick reversal.”