Changpeng Zhao Challenges Elon Musk’s Concerns Over Bitcoin’s Energy Impact
Changpeng Zhao, CEO of cryptocurrency exchange Binance, took to Twitter to respond to criticisms regarding cryptocurrency’s environmental impact, subtly addressing recent comments by Tesla CEO Elon Musk. Zhao’s tweet argued that electricity usage for electric vehicles is seen as eco-friendly, while the same for financial networks, such as cryptocurrency, is labeled an environmental threat.
This reaction follows Musk’s recent decision to halt Bitcoin payments for Tesla vehicles, citing the environmental toll of Bitcoin mining and transactions, particularly due to fossil fuel consumption. “We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining,” Musk’s statement read, adding that Tesla aims to resume Bitcoin transactions when the process becomes more energy-efficient.
Musk’s stance aligns with a University of Cambridge report that ranks Bitcoin’s annual energy usage at over 121 terawatt-hours (TWh), comparable to Argentina’s national consumption. Environmental concerns have put Bitcoin under scrutiny, with traditional financial networks like the British banking system also being criticized for high emissions, though deemed essential to economic stability by Greenpeace and the WWF.
