Elon Musk’s ‘50% Clean Energy’ Bitcoin Mining Goal Will Be Complicated To Verify

Elon Musk's '50% Clean Energy' Bitcoin Mining Goal Will be Complicated to Verify

On Sunday, Tesla’s CEO Elon Musk tweeted that when there’s “confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.” However, there’s a big problem with this goal, as nobody knows exactly how to measure 50% clean energy usage let alone precisely where miners are geographically located.

Can Elon Musk’s 50% Clean Energy Goal Be Met?

Elon Musk and a number of billionaires have a lot to say these days and it seems Musk can move the price of BTC with a single tweet. It surely was the case when Tesla first accepted bitcoin (BTC) for electric car purchases at Tesla.

After that announcement, BTC’s price jumped by $10K seeing one of the largest daily candles in its lifetime. Then when Musk tweeted that bitcoin wouldn’t be accepted and Tesla cited environmental concerns, the price dropped significantly. Sunday’s tweet boosted BTC prices by 9% and the price has inched past the psychological $40K region.

Despite the good intentions, it’s hard to say how Musk will accomplish his goal of figuring out whether or not the bitcoin mining ecosystem is using 50% clean energy. Some studies indicate the goal could be already met as researchers have been looking into the number of miners who leverage renewables for quite some time now.

Musk may want to read the report published by Coinshares in June 2019, which shows 74.1% of the bitcoin mining industry is “heavily” driven by renewable energy sources. Additionally, Coinshares published a report on the same subject the year prior, and found the percentage of renewable energy-dependent miners was around 77.8%.

Bitcoin Mining Data Discrepancies Everywhere

Global asset manager Ark Invest Management explained in mid-May that concerns over the Bitcoin network’s energy consumption are “misguided.” Even John Lennon’s son detailed that Bitcoin’s use of energy was a silly argument compared to the carbon footprint that’s tied to consumerism. Moreover, Bitcoin.com News is still asking: Where are all these environmentalists getting their electrical data from anyway?

Well, it seems most critiques have been leveraging data derived from Cambridge Bitcoin Electricity Consumption Index (CBECI) and the index provided by digiconomist.net. Both metrics show large discrepancies (between each site) to this very day and in December 2020, Bitcoin.com News was told at the time the “CBECI map hasn’t been updated for some time now.” These discrepancies and the notation that data wasn’t (at least in December 2020) being updated regularly, could be problematic for analysts.

The reason this discrepancy was highlighted in the first place by the CBECI representative was because of the website’s claims that 65% of the hashrate was located in China. This data point was disputed in July 2020, when research from Bitooda noted that only 50% of the global hashrate stemmed from China.

Despite all the increased hashrate in North America and all the Western countries purchasing thousands of mining rigs over the last month, on June 14, 2021, CBECI data still shows 65.08% of the BTC hashrate is in China. Pool statistics show Foundry USA has captured a lot more hashrate in recent times, gathering 4.3% of the global hashrate on Monday.

How much hashrate is located in China has been contested for a while now and in mid-April 2021 this fact was highlighted by the cofounder of blockchain data aggregator Coinmetrics.io, Nic Carter. On April 21, Carter further explained how hard it is to estimate hashrate percentage drops.

Hard-to-Track Data Points Are Kind of the Point of Decentralized Verification System

Meanwhile, Microstrategy’s CEO Michael Saylor has been discussing the Bitcoin Mining Council on Twitter and noted the group will meet this week, on Wednesday. Despite the good intentions for this idea, people are still skeptical of the concept and wonder if it even matters.

“On Wednesday, you are all invited to meet with members of the Bitcoin Mining Council to discuss the latest on bitcoin Mining, the energy debate, network dynamics, China mining policy, North American mining developments, tech trends & industry outlook,” Saylor tweeted.

North America may have around 10% to 15% of the global hashrate, but that’s awfully small in contrast to the majority of miners worldwide. However, the latest crackdown news stemming from Beijing may push the global industry of miners toward renewable consumption anyway.

Lastly, there are lots of miners worldwide and we do have a few maps published by Coinshares and others that show some locations where mining facilities are located. Some mining operations are very open to publicly disclosing where they are located, while others are secretive and will not disclose such information.

If one cannot truly estimate where all the bitcoin miners in the world are located, then how do we know if 50% clean energy is being used? If we trust the reports, studies and information we have today, the 50% mark may be already met. Although, with the number of discrepancies and hard-to-track data points mentioned in this article, we may never know the exact number of miners using clean energy or know exactly where they are located.

What do you think about Elon Musk’s intentions to have Tesla accept bitcoin again once miners cross the 50% clean energy threshold? Let us know what you think about this subject in the comments section below.

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After Central Bank Devalues Naira by 5% Finance Minister Attributes Drop to ‘Market Forces’

Nigerian Finance Minister Zainab Ahmed has denied widespread reports that the Central Bank of Nigeria (CBN) had sanctioned the devaluation of the local currency sometime in May 2021. Instead, she attributes the naira’s fall to the “volatility in the oil price.” Ahmed’s remarks come just a few weeks after the official naira exchange rate dropped from $381 to the dollar to the current rate of 411:USD1.

Devaluation vs Depreciation

As previously reported by Bitcoin.com News, the CBN had initially allowed the naira’s exchange rate to drop to 419.5 per U.S. dollar. However, since May 14, 2021, the naira’s exchange rate against the dollar has remained at or just below 411. It is this apparent adjustment of the exchange rate by the CBN (which meets Investopedia’s definition of devaluation) that prompted reports that the naira has been devalued.

However, in her explanation, Finance Minister Zainab Ahmed still refuses to equate the CBN’s tinkering with the exchange rate to devaluation. She said:

Let me not use the word devaluation. (The) naira is responding to market forces of demand and supply. We have oil and gas, unfortunately, still the major source of foreign exchange.

According to a report, oil contributes less than 15% to Nigeria’s Gross Domestic Product (GDP) yet it brings in “at least 70-85 per cent of revenue and 80-90 per cent of foreign exchange in Africa’s biggest oil producer.” In order to remedy this, Ahmed says Nigeria is now focused on finding and developing alternative sources of foreign exchange.

Unifying the Naira’s Multiple Exchange Rates

In the meantime, as the CBN and Nigerian government attempt to unify the naira’s multiple exchange rates, the currency continues to weaken on the parallel market. For instance, at the time of writing, naira’s sell rate had depreciated to 502 against the dollar from the 493 that had been reported in late May. Before the devaluation, the naira’s black market rate had stabilized around 485.

However, following the CBN’s exchange rate adjustment, the gap between the official and parallel market exchange rates has grown. This growth, in turn, raises fresh doubts about the central bank’s ability to unify the naira’s multiple exchange rates.

Do you think it’s possible for the CBN to unify the naira’s official and parallel market exchange rates? Tell us what you think in the comments section below.

Original Article

Experts: Regulatory Uncertainty and Slow Embrace Hampering Crypto Growth in Kenya

Regulatory uncertainty and the slow embrace of cryptocurrencies continue to be key impediments to the growth of Kenya’s digital currency market, experts say. They also assert that without speedy regulation, which they believe will hasten the adoption of digital currencies, Kenya’s sector will remain open to fraud.

Kenya’s Embrace of Crypto Slow, Exchange Reps Point to Need for Legislation

George Mwakisha, the business development manager at Binance Kenya, says the country can reap the full benefits of digital currencies if it moves to pass the relevant legislation, local media reports. Mwakisha is said to view the lack of clear laws regarding cryptocurrencies as leaving the country open to fraud.

Meanwhile, the Binance Kenya representative’s sentiments are shared by Apollo Sande, Luno Crypto Exchange’s country manager for Kenya. According to Sande, one of the benefits of regulating cryptocurrencies is the likely boost to cross-border remittances into the country. Adopting cryptocurrencies will also give Kenya “greater access to international markets” the country manager adds.

Kenyans on Board, Banks Not so Sure

The remarks by Kenya’s crypto experts follow recent reports that the country, alongside five other East Africa states, is exploring the possibility of launching a regional digital currency. Already the country’s Blockchain & Artificial Intelligence Task Force — in its 2019 report — has recommended the use of cryptocurrency in Kenya, noting that the global trend is “inevitable.”

As previously reported by Bitcoin.com News, Kenya now has one of the largest P2P bitcoin traded volumes on the African continent.

Despite the recommendations and apparent adoption of crypto assets by Kenyans, however, the Central Bank of Kenya’s (CBK) embrace of cryptocurrencies has been slowed by “unending discussions on developing regulations” the report said.

Do you think the regulation of digital currencies by the CBK will help speed up adoption in Kenya? Tell us what you think in the comments section below.

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