For two months, between March and May, Tesla opened its range of electric cars to Bitcoin payments. The method has since been ruled out. Blame it on the environmental impact of cryptocurrency. Summer has passed and the water has flowed under the bridges. Bitcoin is reaching new heights and the automaker, like its CEO Elon Musk, is talking about it again.
On October 25, Tesla sent a accounting document to the important American financial policeman on the subject of cryptocurrencies. In addition to its economic results for the last quarter, the brand mentioned the subject of digital tokens. “We could in the future relaunch the possibility of cryptocurrency transactions”, can one read on any of the 66 pages of the file. Five months later, would Bitcoin be back with other tokens?
Can we provide several tokens?
With a lot of distance and mystery, Tesla did not bring up the name of Bitcoin, but of cryptocurrencies in general. It must be said that the ecological reasons for the withdrawal of Bitcoin purchases at Tesla are still relevant and that the operation of the token has not known a miracle solution to become green in recent months. At the same time, other blockchains are becoming known (and adopted) for their efficiency. This is the case with Solana or Cardano, for example.
Without hinting at anything, Tesla is still not closing the way to new cryptocurrency payment possibilities as an alternative to Bitcoin. On the stablecoin side, too, it wouldn’t be so sassy to imagine the builder going into accepting USDC or USDP, for example. These tokens are backed by the dollar and therefore do not have the same volatility risks as bitcoins.
The context is favorable: in addition to being more secure, these tokens are able to be fully regulated (and therefore recognized) by the DRY (Securities and Exchange Commission), the American policeman of the markets, to be able to be regulated and used on a larger scale. They are also a bridge between the uncertainties of the prices of cryptocurrencies like Bitcoin, decentralized finance and traditional fiat currencies.
Things are moving for Bitcoin
If Tesla was only eyeing Bitcoin again, Elon Musk and his teams could seek to highlight the moves to relocate mining centers from China to the United States. Between March 2021 and today, Bitcoin has radically changed in its geographic facilities. Seven months ago, mining in China still accounted for 44.6% of global mining. Today, the share in the Middle Kingdom has fallen to zero.
US overtakes China as biggest #bitcoin mining hub after Beijing’s crackdown on digital currencies knocks the country’s share of crypto production to zero https://t.co/1m38uuWUnL pic.twitter.com/PLYgyqlQQH
– FT Data (@ftdata) October 13, 2021
The country’s restrictions have banned the mining of any cryptocurrency to prevent the economy from competing with the developing local virtual currency. As a result, in August 2021, the United States recovered 35.4% of the shares, while also leaving Canada and Russia to represent respectively 11.2 and 9.6% of the infrastructure.
“China has opened a boulevard in the United States by intensifying its fight against both bitcoin transactions and their mining, their manufacture on these farms thanks to the resolution of complex equations by thousands of computers”, noted an AFP journalist. The relocation was not without consequence, with a measured drop of 38% in the number of processors dedicated to the mining activity.
The icing on the cake for Tesla and Elon Musk’s patriotism, Bitcoin’s new El Dorado is concentrated in Texas, more than in any other state. A territory in which Tesla put its suitcases a few days ago, when it moved its headquarters from California.
But mining activities in Texas could eventually compete with northern Europe, which would also delight Tesla and greatly decarbonize the operation of Bitcoin. Ireland, for example, is in fifth position, at 4.7% of global mining activity, and produces “Clean, cheap and abundant energy”, can we read in another AFP dispatch. A future in line with Tesla’s original wishes, to adopt Bitcoin again when the latter is no longer an ecological abyss.