“I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralized government. They don’t like that,” news portal decrypt.co quoted Musk as saying on Wednesday, September 29. “It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement”.
Musk’s suggestion to the governments batting for “no action” against crypto comes days after the world’s most populated country, China, imposed a blanket ban on cryptocurrencies mining and trading.
Post China’s ban, the crypto market has witnessed major fluctuations this week, with the prices of highly valued ones like Bitcoin and Ether witnessing more lows than highs.
“Part of it may actually be due to electricity shortages in many parts of China. A lot of South China right now is having random power outages because the power demand is higher than expected. Crypto mining might be playing a role in that,” the Tesla CEO, who also heads space company SpaceX apart from EV-maker Tesla reportedly said, commenting on China criminalising association with the crypto space.
In 2019, a study30255-7) by scientific journal Joule said that Bitcoin production is estimated to generate between 22 and 22.9 million metric tons of carbon dioxide emissions a year in the near future.
The environmental impact of Bitcoin mining has raised concerns around the world, and while countries like China and Russia have illegalised the crypto space, other regions like El Salvador and Miami, Florida in the US are trying to find clean energy solutions to facilitate crypto mining.