It is hard to understand Elon Musk at times. There are moments when he appears to be quite clear regarding cryptocurrency, and other days when he seems to be way off the mark. Either he does not fully understand the influence he has on the space, or he does and says certain things knowing they will have certain impacts. Either way, he has now sent Dogecoin through the roof again with his latest words following the rough week it has had.
Elon Musk and Dogecoin Are Mixing Things Up
Over the past day, Dogecoin – now the fourth largest cryptocurrency in the world – has jumped in price by about 30 percent. This is huge considering the currency had fallen roughly 20 percent prior. The drop largely had to do with Elon Musk renouncing his decision to allow bitcoin payments for Tesla-based services and products. In addition, Vitalik Buterin – the co-founder of Ethereum, the world’s second largest cryptocurrency by market cap – sent more than one billion Doge units to a COVID relief fund in India, a move that had harsh repercussions.
Either way, the asset appears to be on a path towards recovery. Elon Musk is assuring crypto traders everywhere that he has full belief in the crypto system, and he is positive it is the future of finance. He appears concerned that his latest words were taken out of context, and he is trying to remedy the situation. He states:
To be clear, I strongly believe in crypto, but it cannot drive a massive increase in fossil fuel use, especially coal.
Basically, while he thinks there is a lot of power in crypto usage, he is worried that the mining of certain cryptocurrencies – particularly bitcoin – will do environmental harm that cannot be reversed down the line. This is an argument that is as old as the dickens, yet for some reason, it continues to make heavy headway, and many are arguing against BTC simply because they carry atmospheric concerns.
How Big Is the Mining Problem?
In the past, it has been stated that bitcoin mining now uses more energy than countries such as Iceland and Argentina. It is also said that it has as big a carbon footprint as the entire city of Las Vegas, Nevada. One of the primary problems with the mining sector as of late is that much of the activity stems from China, a country not known for its environmental prowess. Much of the BTC mining operations in the nation require fossil fuels and coal to operate, which tend to leave more pollutants in the air.
Thus, Kevin O’Leary – aka Mr. Wonderful on the television program “Shark Tank” – has commented that he will not be buying any more bitcoin mined in China. In a recent interview, he likened the asset to “blood money,” and stated that he will only be garnering bitcoin sourced from hydroelectricity and other clean methods.