Thursday, March 25, 2021

Bitcoin Energy Use - Tesla

 Elon Musk tweet - 

You can now buy a Tesla with Bitcoin 

Henry Manice, Financial Times, tweet - 

Why not cut out the middleman and install a petrol engine?


lastgreek said...

"You can now buy a Tesla with Bitcoin"

Drug dealers rejoice!

Ahmed Fares said...

From an article on FT Alphaville:

Investors looking into this asset class should keep in mind that modest amounts of capital inflows into Bitcoin can have an outsized environmental impact. We estimate that a $1bn fresh inflow increases Bitcoin prices on average by 11%, which in turn results in a carbon footprint of 5.4mn tons (Exhibit 81). Comparatively, we do not find many other human activities that have a higher carbon footprint per dollar of inflow (Exhibit 82). As a reference point, we calculate that a $1bn dollar inflow into Bitcoin is equal to 1.2mn cars driven over the course of a year or 12.7mn barrels of oil. Looked at differently, a single Bitcoin purchase at a price of ~$50,000 has a carbon footprint of 270 tons, the equivalent of 60 ICE cars.

Ahmed Fares said...

Meanwhile, Bitcoin’s demand for computer chips has hogged the production lines at Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co., contributing to a global chip shortage that is costing automakers tens of billions of dollars and threatening the phone industry as well. —Noah Smith

lastgreek said...


AC@achettup 22h

Replying to @nntaleb

Not just that, Tesla reserves the right to refund you in either BTC or the dollar equivalent at the time of purchase. So lets say you buy at $60k BTC. Now you want to return within the period Tesla gives you for free, but BTC has fallen to $30k. Tesla will give you back in BTC.