In May 2021, Tesla CEO Elon Musk announced that the company was suspending the purchase of vehicles with Bitcoin due to concerns about the rapid increase in fossil fuel consumption for BTC mining. Musk’s comments raised concerns about the energy consumption associated with Bitcoin mining and its long-term sustainability.
However, XRP attorney John Deaton has dismissed Musk’s views on the energy consumption of bitcoin mining, stating that the argument is losing strength in the current scenario. According to Deaton, people will focus more on the state of the economy than the amount of energy consumed by bitcoin mining.
The macro environment and the US banking crisis
Deaton made his comments in the context of the current US macroeconomic environment, which is being accentuated by volatility related to the ongoing regional banking crisis. The crisis came as the US Federal Reserve continued its rate hike streak in a tightening effort to bring inflation down to the 2% target.
Deaton emphasized that people will be far more concerned about jobs and the economy and far less concerned about how much energy BTC consumes. He believes that the energy consumption argument is becoming less relevant and that there are other factors that are more important in the current macro environment.
Increasing share of sustainable energy consumption in bitcoin mining ecosystem
Recent data has shown that the bitcoin mining ecosystem has made steady strides in increasing the percentage of sustainable energy consumption. While concerns about energy consumption associated with BTC mining remain, the industry is taking steps to address these concerns.
For example, bitcoin miners are increasingly using renewable energy sources such as solar and wind power to power their mining operations. This shift to sustainable energy sources helps reduce the environmental impact of bitcoin mining and makes the industry more sustainable in the long run.
Bitcoin price slips amid news of US bank stock recovery
Meanwhile, bitcoin price has slipped amid news of some recovery in US bank stocks as well as recent action by the Commodity Futures Trading Commission (CFTC) on crypto exchange Binance. The CFTC has reportedly launched an investigation into Binance over allegations that it allowed US clients to trade derivatives without the required registration.
The news of the CFTC investigation has added to the uncertainty in the cryptocurrency industry and caused the price of bitcoin to drop. However, some analysts believe the decline is temporary and the industry will continue to grow in the long term.
XRP advocate John Deaton believes that the energy consumption argument put forward by Elon Musk is losing strength in the current macro environment. While concerns about the environmental impact of bitcoin mining remain, the industry is taking steps to address these concerns and switch to more sustainable energy sources.
Diploma
The drop in bitcoin price amid the news of Binance’s CFTC investigation is temporary, according to some analysts. The industry should continue to grow in the long term and become more sustainable and environmentally friendly. As the cryptocurrency industry continues to evolve, we will likely see more debate about its environmental impact and more efforts to address these concerns.
