An Open Letter On Bitcoin To Tesla And Elon Musk

Dear Tesla and Elon Musk,

Much has been written connected the issues of this currency, specified arsenic assisting organized crime, untraceability and the biology interaction of its use. Nonetheless, portion this currency is overwhelmingly utilized for crime, virtually untraceable, and kills thousands of trees each year, we inactive deliberation it would beryllium excessive to prohibition fiat currency completely. However, we are confused wherefore a treble modular appears to beryllium for bitcoin.

We Are Aligned Parties successful Understanding the Environmental Impact:

When Tesla stopped accepting bitcoin, Elon wrote: "Tesla's ngo is accelerating the involvement of sustainable energy. We can't beryllium the institution that does that and besides not bash due diligence connected the vigor usage of Bitcoin." As you know, galore Tesla owners are bitcoin owners, and portion the Bitcoin assemblage is vast, it includes galore who are aligned successful the interest cited. Bitcoin users besides privation to “accelerate [...] sustainable energy.” Further, galore (even most) bash deliberation “appropriate diligence” is prudent with regards to bitcoin’s vigor usage.

We are amazed that these arguments are utilized against bitcoin, arsenic the disposable grounds demonstrates that bitcoin really accelerates sustainable vigor adoption. In a real-time basis, renewable vigor firms often nutrient powerfulness successful excess of section demand, making it unprofitable to continuously make cleanable powerfulness and discouraging concern into these projects. Research confirms, however, that renewable projects tin importantly summation profits by integrating bitcoin mining into their operations. Because bitcoin tin beryllium mined anywhere, anytime, firms tin excavation bitcoin erstwhile grid request is met and vigor prices are debased and merchantability vigor erstwhile request is positive. This allows renewable vigor operations to marque wealth erstwhile they whitethorn different person been unprofitable, incentivizing accrued concern successful renewable tech and hastening the R&D needed to marque renewables arsenic inexpensive arsenic possible. In this way, Bitcoin whitethorn beryllium 1 of the astir important technologies to assistance successful the enlargement of cleanable energy.

Further, plentifulness of things, similar Tesla cars themselves, devour massive amounts of energy; we determine whether that vigor usage is worthy it based connected the benefits that it provides. Bitcoin lone works if the benefits of the exertion outweigh the cost, and knowing the existent biology interaction of the exertion alongside allows america to adequately marque that cost-benefit analysis.

Given the overlapping involvement of the Bitcoin assemblage successful biology issues, we are allied parties successful “appropriate diligence connected the vigor usage of Bitcoin.” Generating prime investigation of bitcoin’s biology interaction is difficult. As a result, existing mainstream writings connected biology questions are highly problematic, travel from misunderstandings astir bitcoin, and typically person inflammatory and misleading headlines. But the grounds seems to bespeak that, portion some Tesla vehicles and bitcoin usage energy, some technologies are bully for the environment.

Assessing Energy Mix

In July 2021, Elon Musk stated arsenic rationale for their determination to suspend payment, "I wanted a small spot much owed diligence to corroborate that the percent of renewable vigor usage is astir apt astatine oregon supra 50%, and that determination is simply a inclination toward expanding that number, and if truthful Tesla would resume accepting bitcoin."

It’s a spot ironic that Tesla is truthful acrophobic astir Bitcoin’s vigor sources. According to the champion disposable research, Bitcoin’s vigor premix is already astir 56% renewable, compared to astir 20% for the mean American’s powerfulness consumption. Since over 80% of Tesla charging is done astatine home, does that mean Teslas should beryllium enactment connected clasp until the vigor radical usage to complaint them is much than 50% renewable? We anticipation not.

The percent of renewable vigor utilized by Bitcoin is besides incentivized to summation rapidly. In March 2021, Bloomberg New Energy Finance recovered that "renewables are the cheapest powerfulness enactment for 71% of planetary GDP and 85% of planetary powerfulness generation. It is present cheaper to physique a caller star oregon upwind workplace to conscionable rising energy request oregon regenerate a retiring generator, than it is to physique a caller fossil fuel-fired powerfulness plant. ... On a outgo basis, upwind and star is the champion economical prime successful markets wherever steadfast procreation resources beryllium and request is growing." Considering that bitcoin mining trends toward the astir affordable vigor available, anyplace successful the world, and the cheapest vigor is astir often renewable energy, past logically the vigor premix of Bitcoin is going to proceed moving toward renewables.

Bitcoin’s Environmental Impact Needs More Research:

Initial Example Methodology

Existing, albeit limited, probe connected these topics indicates that bitcoin’s biology interaction is vastly overstated. Most probe connected the biology interaction of bitcoin presumes determination to beryllium fundamentally nary energy oregon biology outgo of fiat currency and fiscal systems; yet (among different examples) until reasonably recently, checks were often loaded connected planes crossed the state earlier they cleared. A ample information of bitcoin transactions are cross-border, which successful fiat dollars is not conscionable highly costly but besides assets intensive.

Tesla should besides sympathize with this concern arsenic critiques connected Tesla’s vigor premix are widespread.

Our Proposal:

To beryllium astir effectual successful getting to the bottommost of this question and convincing Tesla, different aboriginal vendors, and policy-makers successful Washington of the robustness of the results, we suggest that this probe beryllium conducted by those with beardown biology credentials to get to the bottommost of the contented with findings that resonate acold extracurricular of the existing Bitcoin idiosyncratic base. We cognize that Tesla has entree to specified institutions and tin assistance our conjugation to see biology groups. It’s clip to get steadfast answers connected the subject.

We, the undersigned, are co-founders of a caller inaugural advocating nationalist argumentation for bitcoin. Let’s make a robust methodology to analyse this topic, physique successful public, make a probe conjugation with beardown biology bonafides, and get to the bottommost of the contented done a probe task that authoritatively answers this question.

All Bitcoin users should cognize the c dioxide interaction of their usage and beryllium capable to transact with vendors specified arsenic Tesla. They should cognize the c dioxide interaction of utilizing dollars, too.

Sincerely,

Derek Khanna, Grant McCarty and David Zell

The Bitcoin Magazine Policy Team