Home Crypto Elon Musk Criticizes Bitcoin Mining for Being Highly Centralized in China, Hinting...

Elon Musk Criticizes Bitcoin Mining for Being Highly Centralized in China, Hinting that Tesla May Dump Bitcoin

Elon Musk’s tweets have served to create headwind for Bitcoin, sending the cryptocurrency on a steep plunge.

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Recently, Musk implied that Tesla could unload its Bitcoin holdings. He additionally slammed BTC mining operations, that are extremely concentrated in China.

Reuters reported on Monday that Musk raised issues about Bitcoin’s mining operations whereas responding to a pseudonymous Twitter person known as CryptoWhale. The put up by CryptoWhale warned BTC traders that they might “slap” themselves by subsequent quarter “if Tesla dumped the remainder of their Bitcoin holdings”. Musk replied, “Indeed,” with none additional clarification on whether or not Tesla will unload its BTC. However, the market believes that his tweet has led to Bitcoin’s worth plummeting.  

The Tesla CEO posted an announcement not too long ago that the corporate will droop automobile purchases utilizing Bitcoin cost as a result of environmental causes. The assertion learn:

“Cryptocurrency is a good suggestion on many ranges. However, it can’t come at nice value to the surroundings.”

Meanwhile, Musk additionally responded to a different post on his Twitter, referencing a flooding incident that occurred at a coal mine in Xinjiang, China not too long ago. The flooding impacted Bitcoin mining operations. Musk criticized the method of Bitcoin mining and pointed to its centralization in China in addition to its environmental-unfriendly function as being problematic. He mentioned:

“Bitcoin is definitely extremely centralized, with supermajority managed by a handful of huge mining (aka hashing) firms. A single coal mine in Xinjiang flooded, virtually killing miners, and the BTC hash fee dropped 35%. Sound ‘decentralized’ to you?”

Fortune reported beforehand that the blackout halted about one-third of all Bitcoin’s computing energy globally. Referring to BTC mining, a examine showed that as a lot as 66 % of worldwide hash charges come from and are managed by Chinese entitles. The hash fee, a measurement used for the processing energy of the BTC networks, dropped not too long ago as a result of a regional blackout in North-Western China.  

Image supply: Shutterstock

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