Because of China’s cracking down on bitcoin mining Elon Musk has suspended Tesla’s acceptance of bitcoin. As a result, the cryptocurrency has lost over half of its value since peaking in April.
The vast amount of energy used in bitcoin mining is the most significant challenge to bitcoin’s long-term viability. As a result, the higher the value of bitcoin rises, the more energy miners must use to obtain bitcoin.
Using renewable energy
The disadvantage of consuming a lot of electrical energy is that energy created by burning fossil fuels emits greenhouse gases into the atmosphere, causing climate change. So, while switching to renewable energy for bitcoin mining may not reduce overall energy consumption, it may reduce the use of fossil fuels.
Bitcoin Mining Council
To make progress in bitcoin’s sustainability a new Bitcoin Mining Council has been created. Musk said he spoke with a group of miners who agreed to share information on their renewable energy usage, which he described as “possibly promising.”
Changes to the proof-of-stake system, among other things, are also proposed. You can learn more about the issue here.