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Tesla’s Kimbal Musk says company was ‘very ignorant’ of environmental impact of its Bitcoin purchase – TechCrunch

In an interview with TechCrunch on stage at the Ethereum conference in Denver, Tesla board member Kimbal Musk, brother of CEO Elon Musk, said the company was “very ignorant” of Bitcoin’s environmental impact when it announced last year 1.5 Dollar to buy billions worth of cryptocurrency and would plan to allow owners to buy the company’s vehicles with the currency.

“When we invested in Bitcoin, we were very ignorant. We had no idea about the environmental impact, we literally didn’t know, we felt this seemed like a good store of value and a good way to diversify assets. And of course, it wasn’t long before we got a million — I’m not kidding, probably a million — messages telling us what we’re doing to the environment,” Kimbal Musk said in an interview with this reporter. “And of course our company is about creating an alternative energy future, so we really weren’t informed enough when we made that decision.”

Kimbal Musk says that while Tesla “hasn’t necessarily regretted” his bitcoin purchase, he hopes the broader blockchain industry can transition to greener infrastructure, noting that his own philanthropic organization Big Green is a crypto-native DAO governance structure adopted on a less power intensive blockchain.

Image copyright: Jesse Morgan // ETH Denver Tesla Board Member Kimbal Musk discusses the future of philanthropic giving in an interview with TechCrunch’s Lucas Matney at the Ethereum Denver 2022 conference.

“I really don’t agree with the environmental impact of crypto, but I love what it does,” said Kimbal Musk onstage. “So we just have to figure out how to do it without the environmental impact…. having that impact on the environment is just not an option.”

Tesla’s decision to buy bitcoin last year sparked a major bull run for the cryptocurrency, although that surge was famously reversed months later by the company’s announcement that while it didn’t plan to sell its bitcoin immediately, it no longer planned to sell bitcoin more than Means of payment would accept vehicle purchases.

“Cryptocurrency is a good idea on many levels and we believe it has a bright future, but it must not come at a great cost to the environment,” Elon Musk wrote in part in a tweet last May. “Tesla will not sell bitcoins and we intend to use them for transactions once mining transitions to more sustainable energy.”

While much data is still missing on how heavily the Bitcoin mining network relies on renewable energy sources, it is clear how significant the network’s energy consumption is. estimates DigiconomistThe energy tracker of suggests that the total annualized energy footprint of Bitcoin’s mining operations has nearly doubled since Musk’s tweet last May. The Bitcoin network contributes as much carbon to the atmosphere as the country of Kuwait annually, according to the site’s estimates.

Kimbal Musk has been on the Tesla board of directors since 2004.



Tesla’s Kimbal Musk says company was ‘very ignorant’ of environmental impact of its Bitcoin purchase – TechCrunch Source link Tesla’s Kimbal Musk says company was ‘very ignorant’ of environmental impact of its Bitcoin purchase – TechCrunch

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