On 8th February 2021, Tesla announced it had bought $1.5 billion worth of Bitcoin and would start accepting it as payment. But just a few months later, on 13th May, Elon Musk tweeted that Tesla would suspend Bitcoin payments due to environmental concerns.

The impact? Bitcoin’s price dropped 17% overnight.

So, what’s the environmental issue here? Let’s break it down 👇

⚡ How is Bitcoin Created?

New bitcoins are generated through a process called mining.

• Miners use powerful computers to solve complex puzzles.

• This requires huge amounts of electricity.

• Most of this electricity still comes from fossil fuels like coal, which leads to massive carbon emissions.

🌍 The Environmental Cost of Bitcoin

• Bitcoin consumes 178 TWh of electricity annually – putting it in the top 30 energy consumers in the world (comparable to Argentina!).

• One Bitcoin transaction = 680,000 Visa transactions in carbon footprint.

• Or, the same as 51,210 hours of watching YouTube.

💡 The Bigger Picture

While blockchain and cryptocurrencies are revolutionary, their sustainability problem cannot be ignored. Many experts are now exploring greener alternatives like proof-of-stake mechanisms that reduce energy use drastically.

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