Tesla announced plans to resume accepting Bitcoin payments for vehicle purchases, as cryptocurrency mining has reached a key environmental milestone with over 56% of mining operations now powered by renewable energy sources.
The decision comes after Tesla CEO Elon Musk previously suspended Bitcoin payments in May 2021 due to concerns about the cryptocurrency's environmental impact. Musk had stated Tesla would reconsider accepting Bitcoin once mining operations exceeded 50% renewable energy usage.
Recent data shows Bitcoin mining's energy mix has shifted substantially toward cleaner sources, with hydropower leading at 23%, followed by wind at 5% and solar at 2%. Nuclear energy contributes an additional 9%, while coal usage has dropped from 40% to 22%.
Major mining operations have relocated to regions with abundant renewable resources, including Quebec, Iceland, and Texas, taking advantage of hydroelectric, geothermal, and wind power. Countries like El Salvador have also emerged as mining hubs due to available geothermal energy.
Despite improvements in its environmental profile, Bitcoin mining still faces challenges. The industry consumes approximately 127 terawatt-hours annually and generates about 69 million metric tons of CO2 emissions.
Mining companies like Riot Platforms and Marathon Digital Holdings are increasing investments in sustainable energy solutions, though operational costs remain high amid the global energy crisis.
The reinstatement of Bitcoin payments at Tesla represents a milestone for both the automotive and cryptocurrency sectors, potentially paving the way for wider adoption of cryptocurrency transactions in sustainable business practices.