Cryptocurrency is currently taking the world by storm. It has become very popular, especially amongst the youth and those willing to invest. Even prominent businessmen like Elon Musk are encouraging it amongst the masses. A single Tweet from him increases the cryptocurrency market’s volatility and creates an influx of newer people in it. It is safe to say that he has a significant impact on the cryptocurrency business. Thus it becomes the topic of utmost importance when Elon Musk makes any statement regarding cryptocurrency.
Even though cryptocurrency is considered the currency of the future, there are many reasons why cryptocurrency mining is considered unfavorable. To know more about this, it is beneficial to visit trusted websites like trustpedia.io. In recent times even Elon Musk, who has in the past supported it by encouraging green mining, has started to question it. Below are the common reasons why people are not supporting cryptocurrency mining.
1. Mining consumes a lot of resources:
Cryptocurrency mining in the present requires many resources, including financial help, energy from different sources, and time. Not everyone has the resources to be able to take up cryptocurrency mining. This, in turn, creates a small number of people who have the power to mine cryptocurrency.
2. Increasing competition:
When blockchain technology first came into force, individual people were the ones who mined cryptocurrency. But, since cryptocurrency is blossoming out to be a new arena and opportunity for many investors and businessmen to venture in, cryptocurrency mining has become an activity that is taken up by networks formed by these large corporations. This, in turn, also increases the competition in the market, making cryptocurrency mining unachievable for many who do not have the same resources or connections.
3. It has become a difficult task:
Besides outside factors like the lack of resources, time, and money, cryptocurrency mining has also become more challenging. Earlier cryptocurrency mining could be done from people’s personal computers, but now the blockchain technology requires you to have high end and faster processing computers to mine cryptocurrency. It is only understandable that this creates a barrier between those corporations with people who have experience in the field and those who do not possess the same qualifications.
4. Heavy investments before getting the output:
It is essential to know that even if you invest your resources and money into cryptocurrency mining, it is bound to take some time before you get to start seeing any tangible result. Especially with the advent of such high competition in the market, it has become much more complex than ever before. Thus, many people, especially individuals, are not leaning towards mining cryptocurrency on their own. Big companies who have already formed special zones for mining cryptocurrency, like mining pools or farms, are taking over the mining business as it is a good investment. They can afford to wait before getting any real benefit from it.
5. Malware can attack cryptocurrency mining:
It is common knowledge that anything on the internet or computers cannot be completely safe. Cryptocurrency mining is one such activity that is always in danger of being attacked by Malware and other computer viruses. Even though it is not that common, it can still be a hurdle for someone new to the mining world and can put them off from this activity. Thus, many companies and associations indulged in cryptocurrency mining are investing heavily in the protection and security of their devices.
6. Cryptocurrency mining is not exactly eco-friendly:
Most of the mining of cryptocurrency is done by using energy generated by the combustion of fossil fuels and other non-renewable energy sources; this is bad for the economy and the environment. This is the reason why many people, especially environment enthusiasts, are against cryptocurrency mining. Though some people and organizations invest in green energy for mining cryptocurrency, it is not always the case. Most of the cryptocurrency is mined by using energy generated by fossil fuels, and this creates a big blot in the name of cryptocurrency mining.
So, out of all the reasons stated above regarding why cryptocurrency mining is not considered favorable, which is the one due to which Elon Musk is no longer supporting it? It is essential to know that Elon Musk is not disregarding cryptocurrency mining as a whole; he is only unaccepting to a part of it. Musk has a particular reason he is no longer accepting Bitcoin, which is the most popular cryptocurrency right now, for his company Tesla. He has asserted that Tesla is a green company, and it would be against the company’s vision to take payment in Bitcoin, which is mined by energy gained from fossil fuel.
The main reason that he has stated for taking such a decision is the ill effects caused by cryptocurrency mining using non-renewable fuels, especially coal, on the environment, which furthers climate change. Elon Musk has made it clear that he would accept payment in cryptocurrency only when it is mined using Clean Energy forms. He is looking forward to accepting Bitcoin that is mined via renewable and green resources in the near future and has himself invested in green mining of cryptocurrencies like Bitcoin.
What will be the consequences of the statement by Elon Musk?
This statement recently made by Elon Musk has quite literally come as a breath of fresh air in the foggy market of cryptocurrency mining. This will encourage a lot of miners and mining pools and farms to invest in greener and cleaner technologies and fuels for generating and mining various cryptocurrencies, especially Bitcoin, which is the one that Tesla used to accept payment in. His statement is sure to positively affect the cryptocurrency market and make it much cleaner and a better currency for the future. Since cryptocurrencies produced by using cleaner fuels will have zero to no carbon footprint, they can really be the currency of the future.