The “dog father” Elon Musk essentially gave his ultimatum on Sunday.
It’s pretty easy to see why. If your company’s goal is to reduce fossil fuel consumption, it is important to take the lead. Elon Musk’s tweets about Bitcoin are the best ever example of how much power he has.
There are many things we can admire Elon Musk for and the most important thing is this step. Regardless of our personal opinion, he consciously took a risk to take a stand.
Besides, he’s not wrong. Bitcoin production (or mining) is reported to cause an estimated 22 to nearly 23 million tons of carbon dioxide emissions per year. According to this report, that’s somewhere between the amounts Jordan and Sri Lanka produce each year.
So it makes sense why the owner of an electric car company created to reduce emissions might not want to receive payments for something that causes such emissions.
We can get a headache if we think about it, but one thing is important: this is good news.
After all, when was the last time a billionaire really did something for the environment? Just like Elon’s support for Doge, it may be part of a longer game embedded in Musk’s renewable energy plans for the future. Perhaps his wrestling with the price of Bitcoin that led so many others to become would-be crypto bull wranglers has a deeper purpose …
The real reason Elon Musk might take action against Bitcoin miners
Seeing the aftermath of Elon Musk’s tweets leads to a rabbit hole. Finally, you discover his plan to build the largest virtual power plant in the world. Musk has unveiled an ambitious plan for 2022 and beyond to provide 50,000 homes in South Australia with free solar panels and Tesla batteries over a four-year period. It is estimated that this will meet 20 percent of the daily energy needs of the entire state. This could reduce the energy costs of the households involved by 30%.
What do lower energy costs mean? Increased savings, more consumer purchasing power and a more efficient economy – especially in times of such dizzying inflation. While this is great news in concept so far, it is being carried out in South Australia. Will we see more places offering the Magic Musk Energy Booster Shot?
Is it so far-fetched to believe that Elon Musk’s tweets about crypto mining issues could be preparation for something bigger? Could we see a future tweet from Musk starting an entirely sustainable crypto mining company? Perhaps he will lobby governments that use his company’s products as leverage. It’s almost like saying Be sustainable or else!
It’s similar to the old concept of having a monopoly on something and only offering it to those who meet certain requirements to buy it. So that essentially makes Elon Musk the world’s first Robinhood Baron.
But hey what about lithium?
American automakers rely on electric cars. The real fuel behind the world’s best electric cars like Tesla (NASDAQ: TSLA), Nio Inc (NYSE: NIO)?
Even the fictional Robinhood wasn’t a complete saint (we’re talking about the story, not the trading platform that became infamous after it vetoed retail investor positions in Gamestop Corp (NYSE: GAM). The EV boom, Elon’s tweets and the crypto craze are shadowing the biggest and least talked about elephant in the living room of modern history: lithium.
The Lithium Triangle, an area that spans parts of Bolivia, Chile, and Argenita, contains more than half of the world’s metal deposits beneath salt deserts, making it seem like a strange world. Miners drill a hole in the salt flats, then wait for the brine to come to the surface and extract filtered lithium carbonate after 12-18 months. It’s cheap, effective, but uses 500,000 gallons of water for every ton of lithium mined.
In Chile’s Slar de Atacama, lithium mining consumed 65% of the region’s water supply. The farmers there have relied on that. I’m not sure Elon can fix that with a tweet.
This leads us to another point … could Elon Musk crack down on bitcoin miners because of the damage the lithium boom is wreaking?
Elon Musk might be a simple scapegoat, but the need for lithium carbonate existed long before he coded in his tiny San Diego apartment.
The bottom line
Ultimately, the golden rule seems to be to follow the money. Drops in cryptocurrencies like BTC can be a good thing, especially if it means more people are getting access to the crypto markets.
Elon Musk is absolutely right. By deterring the pollution from cryptomining, he is setting a precedent for others to hopefully do the same.
Investors looking to diversify into standard markets can watch out for lithium stocks as the EV boom continues to gain ground. Perhaps TSLA (NASDAQ: TSLA) won’t be the first electric car to be sold for a cryptocurrency.
Featured Image & Other Images: Megapixl, Deposit Photos