Tesla to begin mining bitcoin with solar power

Tesla is set to begin mining Bitcoin using 100% renewable solar energy.

The electric car manufacturer has partnered with payments firm Block and blockchain company Blockstream to build a 3.8 megawatt (MW) facility that will commence operations later this year.

Bitcoin mining refers to the process by which new units of cryptocurrency are generated.

However, it has garnered criticism for the large amounts of electricity it requires.

According to estimates from the Cambridge Bitcoin Electricity Consumption Index, the process uses as much energy as a country the size of Egypt.

READ MORE: Elon Musk reverses plan to join twitter board

As a result, climate activists have urged the crypto industry to introduce more sustainable solutions, including transitioning to sustainable energy sources like solar, wind and hydro.

The cost of renewable energy compared to fossil-fuels is preventing the switch, as crypto mining needs the lowest energy price to maximise profits.

“This is a step to proving our thesis that bitcoin mining can fund zero-emission power infrastructure and build economic growth in the future,” Blockstream chief executive Adam Back said.

GlobalBlock UK digital asset broker Marcus Sotiriou told The Independent: “Bitcoin’s climate change issue will become more prominent as price scales, so we will have no choice but to come up with solution,”

“Over the next few years I have the confidence that the bitcoin community will be able to adapt to make bitcoin sufficiently environmentally friendly.”

Click here to sign up to Charged‘s free daily email newsletter

Blockchain & CryptoNewsSustainability


Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.