The news came as a real shock to the faltering Bitcoin.
Its price fell to an 11-week low of $ 46,000. However, the price soon returned to $ 50,000.
However, the company didn’t sell the Bitcoin that it had previously bought as an investment. Payments may return as cryptocurrency mining and transfers become more sustainable. The company sees the future in cryptocurrencies, so it is considering introducing the purchase of Tesla using other cryptocurrencies.
This all seems a little odd. After all, the fact that mining Bitcoin spends a lot of electricity has been known for a very long time. Thus, the company was suspected of foul play. Note that Bitcoin advocates argue that most of the network is powered by clean renewable energy sources, including hydropower.
“Green” cryptocurrency alternatives
The company is considering other cryptocurrencies that would use less than 1% of Bitcoin’s energy to transaction ratio.
On the morning of May 13, after Mask’s statement, cryptocurrencies fell in price. Bitcoin wasn’t the only one that went down, according to Binance. Other cryptocurrencies are also getting cheaper: Ethereum – by 6.9%, to $ 4007, Dogecoin – by 12.56%, to $ 0.43.
The tweet sent much of the crypto community into a frenzy of speculation about what other crypto assets Tesla might be exploring.
So, there were suggestions that Tesla will use ETH or XRP, Stellar Lumens (XLM), Algorand, Dogecoin. There are many assumptions.
Let’s consider some of them
The Ethereum network is currently secured using the same energy inefficient consensus method as Bitcoin – Proof-of-Work. However, the upcoming network transition to ETH 2.0, which will replace PoW with Proof-of-Stake. Makes Ethereum 99% more energy efficient than before. Therefore, it is entirely possible that Tesla could move to Ethereum.
Ripple (XRP) could also be Tesla’s choice as all XRP tokens have been pre-mined and XRP transactions consume really little energy compared to other cryptocurrencies.
Stellar Lumens (XLM) also follows the XRP model as all tokens have already been mined. The network also uses the Stellar Consensus Protocol, which the developers say requires less power than PoW and PoS.
Algorand is powered by Pure Proof-of-Stake. Moreover, quite recently, its blockchain has become completely carbon-neutral.
Dogecoin uses Proof-of-Work. And mined using Scrypt, which is energy efficient and faster.
Perhaps a Twitter poll in which Musk asked if Tesla should start accepting Dogecoin payments suggests that the company is going to add this particular asset? After all, Dogecoin is a longtime favorite of Elon Musk. Note that on May 10, Musk announced that in 2022 SpaceX will launch the Doge-1 satellite to the Moon under a contract paid for with Dogecoin cryptocurrency.
However, it is impossible to say with certainty which asset the company will choose, it remains only to observe its actions.