Why Have Tesla Suspended Bitcoin Purchases for Tesla Vehicles

Tesla Car
Tesla Car

Welcome to the Tesla economist. So Tesla has announced the following. Tesla has suspended vehicle purchases using Bitcoin. We're concerned about the rapidly growing use of fossil fuels for Bitcoin mining and transactions, especially coal, emit the most pollutants of any fuel. In several ways, cryptocurrency is a smart thing, and we think it has a bright future. 

However, this cannot be done at the expense of the community. Tesla will not sell Bitcoin, and we intend to use it for purchases as soon as mining shifts to more environmentally friendly energy sources. We're also looking at other cryptocurrencies that use under 1% of bitcoins energy transactions. This strikes me as an odd thing to say. Zachary cook Khan, who literally holds the title of Master of Coin is a financial genius.

Is Elon Musk not accepting Bitcoin?

He has a full understanding of money and currencies along with cryptocurrencies. Therefore, he must be fully aware that this statement is fallacious. I think Elon Musk understands enough also, Bitcoin miners can only make a profit if energy is cheap. Therefore, Bitcoin mining is literally a game of finding cheap energy. When the grid has excess energy. Then it becomes much cheaper at wholesale prices. This is when Bitcoin miners start mining. This also makes Bitcoin miners some of the world's foremost advocates for abundant and inexpensive sources like wind, hydro and solar, and renewable energy is becoming cheaper to produce by the year.

They aren't using the likes of peaker plants just to cover the extra Bitcoin mining. That's not how it works, it's the perfect tool to consume excess or stranded energy from the grit. It is no way means there need to be any extra coal power plants to serve the mining. If you want to compare it to its tangible equivalent, aka gold, then gold mining each year, consumed even more energy than Bitcoin.

And that doesn't even take into fact all the transportation costs associated with gold. Because gold is so incredibly heavy. It requires a lot of energy and cost to transport to even printing fiat currencies cost more than mining Bitcoin. But when you compare it to all the costs associated with banking. The cost of Bitcoin mining is negligible. 

Why did Tesla stop accepting Bitcoin


So moving over to a global cryptocurrency, like Bitcoin, will save such an incredible amount of energy anyway. Just think about all the buildings alone that banks have in all the major cities and the cost of running them. Then transporting other fiat currencies around the world. Or the data centers or store the records of transactions. In other words, Bitcoin can remove all this energy. And it consumes a fraction of the amount of energy, and only when there is an excess amount. Whereas the likes of banks need the energy to run at peak times. 

So perhaps if the entire world moves over to Bitcoin as a currency. Then we consume perhaps 5% of the amount of energy now, saving 95%. Again, excess energy anyway. And now tests are saying, well, 5% isn't good enough. We want point 05 percent as much, we would still be using 1/20 of what it was previously. That's a big enough difference. It would be better if tests are actually spent these efforts on getting their own energy business sorted. As they would have much more of an impact. 

The problem isn't energy consumption. Its dirty energy generation is all just a distraction. I'm even in agreement with art and their research on Bitcoin energy consumption.

What did Elon Musk say about Bitcoin?

Is this another way to convince people to buy Dogecoin? Well, no. Dogecoin is also based on proof of work, or pow, same as Bitcoin. And if Dogecoin scaled. It would have the same problem that Bitcoin has, instead of proof of work. There's also proof of steak. Proof of work requires huge amounts of energy, with miners needing to sell their coins to ultimately fit the bill. Proof of stake or POS gives mining power based on the percentage of coins held by a miner.

Which uses less energy, but someone needs to discover a way of making it as secure as POW if not more secure.

 Now, this is what aetherium 2.0 

It is meant to be, which is partly why people are so excited about it. But it's totally mood as it's not a decentralized currency. It's at the control of the founder rattle it booter and who is an unethical dictator that will control the entire money supply is cerium became the global currency. This is why Bitcoin is so beautiful. No one controls it. It's totally decentralized. 

All other cryptos are just glorified digital fiat currencies. I seriously hope Tesla doesn't announce that they've purchased a large stake in Ethereum. Bitcoin is more like gold. If no one can take your gold from you, which the US government did with executive order 6102 when Franklin D Roosevelt took every American's gold off them. And it was an imprisonable offense to own any gold. Then even when the US dollar was backed by gold, although in theory, it was great. 

Nixon took the dollar. The gold standard in 1971, in my opinion, was the largest this in the history of mankind. Also, the fact it's just so difficult to transport gold anywhere, as it's so heavy and bulky. Like in the great earthquake in San Francisco in 1906. It took too long to transport gold from New York to San Francisco by boat, resulting in a huge depression. 

Incidentally, the entire city was on fire, because insurance companies didn't insure against earthquakes. But homeowners were insured against fires. So everyone set fire to their houses. Bitcoin can be transferred anywhere around the world in minimal time at negligible cost. 

What is the Reason

The another issue of gold is simply it's not fungible. This means it's difficult for example, to use a bar of gold, to pay for your groceries. How to break off just enough gold to pay for the exact amount of groceries. Bitcoin can be broken down to 100 million for the coin, which makes it fungible. Tessa says they're researching other cryptos to be accepted by them as payment. 

With the reason being they want to find one that is more green. If they suddenly decided to accept another form of payment. Then obviously, that crypto would go through the roof or to the moon, just like Dogecoin Sorry, I mean Dogecoin which leads us to believe perhaps tests that are trying to create their own crypto. Elon Musk has been testing his influence on crypto with Dogecoin. 

Lately, as a joke with memes, and he's done similar tests with Bitcoin. He hasn't literally endorsed any crypto yet. Although he does admit they are slightly better than that currencies. But now, if he actually didn't also crypto. He knows that it wouldn't take much effort to create a valuation of around 100 billion dollars likely, in a very short period of time. Tesla in the process of decentralizing energy and transport. 

This is one of the things I love most about the company, taking the power and wealth from the oil industry. The Middle East control about half the world. If tested do create their own crypto. And I just hope it's decentralized like Bitcoin. But then all they might have done is create a better mousetrap. They don't need to be doing this. I'd much rather they concentrated on making more green energy than trying to stop a fraction more energy consumption. And which is like I keep saying excess energy from the grid anyway. 

If it's not decentralized, then, To be honest, it's kind of scary. Look, I want to eons biggest fans, I think what he's achieved is just mind-blowing. But if he controls transport, energy, and money, then that's frightening. No one should have that much power. But if it's done in a decentralized way, so that literally no one can have that much power, then I'm all for it. But like I said, Bitcoin has already achieved that. What changed Ellen's mind. Only a few weeks ago, he was in agreement with jack Dorsey of the square, a huge supporter of Bitcoin. 

What has happened since then? 

Could it simply be how influential Ilan has realized he is in controlling global currency? Usually, 

what's going on in Tesla,

I can draw some inferences as to why they do what they do. In a way that makes sense. But this time, I'm actually at a loss. I'm also disappointed. The decentralization of currencies means a lot to me. I'm very anti-fiat currency. I don't like how governments can simply print more money for themselves. This was not the intended purpose of governments. One of the greatest economic minds, Milton Friedman said the government should be a referee, not an active player. But so to say that they've only suspended Bitcoin not stopped permanently and that it's the mining that needs to transition to more sustainable energy. Is it possible maybe Tesla set up their own solar and battery farm, solely for Bitcoin? I guess we can only sit and watch to see how all this unfolds, and what tests are playing it here. Thanks for Reading. Please hit the thumbs up and don't forget to subscribe.


No comments

You can send any kind of story or any real picture of your area to everyone