Cryptocurrencies' value continues to drop

 

With regards to my previous post about cryptocurrencies' regulation, I have just learnt that the American clean energy company based in Palo Alto, Tesla Inc., will no longer accept bitcoin for car purchase.

Many environmentalists and some Tesla's shareholders have been increasingly critical about the way cryptocurrencies are "mined" using vast amount of electricity generated with fossil fuels.

On 27 February, 2021, the British newpaper "The Guardian" wrote: "It's not just the value of bitcoin that has soared in the last year - so has the huge amount of energy it consumes".  In this perspective, a professor of economics at the University of New Mexico recently said that the amount of electricity used to mine bitcoin has been more than the electricity used by entire countries, like Ireland.

On the one hand, Tesla Inc. is accelerating the world transition to sustainable energy with electric cars and integrated renewable energy solutions for home and business. On the other hand, in the first two months of this year bircoin rose in value thanks to an endorsement by Tesla's Elon Musk, who planned to accept the cryptocurrency as payment. This inconsistency is often a major events that affect the markets! The perception of cryptocurrencies' value changes as the market seeks a new equilibrium making price reflect new information and major news. 

The pictures above show how electricity generated with fossil fuels may affect the environment (The power plants in the pictures are located in Italy).