TL;DR
- Tether’s CEO posted on X, “Bitcoin is energy harvested from the universe,” and described mining as a process of energy conversion.
- Elon Musk questioned BTC’s environmental impact. More than 50% of mining is carried out using renewable sources of all kinds.
- The Fear and Greed Index places Bitcoin in “extreme fear.” BTC is trading around $67,260 after reaching an all-time high of $126,000 in October last year.
Tether CEO Paolo Ardoino addressed the crypto community to underscore the importance of Bitcoin and the mining process. In a post on X, he stated: “Bitcoin is energy harvested from the universe.” Ardoino framed mining as a process that converts abundant global energy into a digital asset operating under the proof-of-work algorithm.
BTC’s annual energy consumption is estimated at 204 TWh, representing 0.5% of global electricity usage. In his view, that energy use reflects the creation of “harvested” value. There has also been a significant increase in the adoption of renewable energy sources by BTC miners.
Bitcoin’s Environmental Impact
Environmental concerns surrounding BTC remain present. Among the figures who have voiced their concerns is Elon Musk. In 2020, Tesla announced it would accept BTC as a payment method for its electric vehicles and later reversed that decision. Since then, more than 50% of BTC mining has been conducted using renewable energy sources. However, Tesla has not reinstated BTC as a payment option.
Many companies have opted to implement solar, hydroelectric, and even geothermal energy generated deep within the Earth. However, there is still a long way to go before Bitcoin becomes a green asset.
Extreme Fear and a Pullback in the Market
Meanwhile, the Bitcoin Fear and Greed Index shows the market is in the “extreme fear” zone, with a current reading of 8. This reflects several factors: heightened recent volatility in the crypto market, macroeconomic uncertainty, and the declining performance of altcoins.
At the time of writing, Bitcoin is trading at approximately $67,260. In October last year, BTC reached an all-time high of $126,000 per coin. As a result, it has lost 45% of its value. Trading volume over the past 24 hours exceeds $32 billion, but it is down nearly 4% during that period. In addition, the crypto market has lost nearly $1 trillion in capitalization over the past month.
