Elon Musk’s Clean Energy Experiment, Is Bitcoin Good for the Climate? Bitcoin’s Energy Debate Sparks Again “YOU CAN’T FAKE ENERGY,” Elon Musk has single-handedly brought the discussion of Bitcoin’s energy use back into public consciousness. Musk’s dare wasn’t just an idle remark it was a pledge. Tesla would resume accepting Bitcoin payments only when more […]
“YOU CAN’T FAKE ENERGY,” Elon Musk has single-handedly brought the discussion of Bitcoin’s energy use back into public consciousness. Musk’s dare wasn’t just an idle remark it was a pledge. Tesla would resume accepting Bitcoin payments only when more than half of Bitcoin mining was powered by clean or renewable energy. Now, a new analysis find that more than 52% of Bitcoin mining is conducted using sustainable or low-carbon sources. Everybody’s wondering: Has Bitcoin finally passed Tesla’s test or does Musk remain unconvinced? Tesla’s 2021 Vow Continues to Influence Bitcoin’s Reputation
In early 2021, Tesla stunned the world when it began accepting Bitcoin for car purchases. But the excitement was short lived. Within months, Musk halted payments in Bitcoin, saying that he was worried about mining’s sizable carbon footprint. He pledged to reconsider only when the network was powered by “reasonably clean” energy preferably about half renewable. That declaration made Bitcoin’s energy fight into a globe trotting cause célèbre. Critics called for cleaner mining, and miners began to shift operations toward renewable grids, hydropower and natural gas. New Data Undercut’s Bitcoin’s Greener Claim An earlier version of this article used incorrect data in a comparison between the energy use of gold mining and the electricity consumed by four similar size publicly traded Bitcoin miners.
About 52.4% of Bitcoin’s global mining uses sustainable or low carbon energy, according to the Cambridge Centre for Alternative Finance (CCAF) 2025 report. Some 42.6% comes from pure renewables such as solar, hydro and wind. The remainder about 9.8% relies on some sort of nuclear or other low carbon power. Fossil fuels, including natural gas, make up about 38.2% and coal the biggest energy villain in Bitcoin’s early days has declined to a mere 8.9%, down from more than 36% in previous years. That’s undeniable progress. But Musk’s bar isn’t just numbers; it’s about lasting change and transparency.
Why Tesla Hasn’t Turned Bitcoin Back On, So if Bitcoin mining has indeed gone green, why is Tesla not accepting BTC after all? Several factors explain the hesitation.
First, definitions vary. Of course, the CCAF study includes nuclear and low carbon energy in its “sustainable” totals, while Musk might consider only renewables like wind or solar to be truly clean. Second, data coverage remains incomplete. The poll accounts for approximately 48% of overall mining capacity so this may have been influenced by off grid or independent miners. Third, Musk is looking for regular coverage, not one off stories. What he’s looking for is long term evidence that the payback on Bitcoin’s energy shift is sustainable, provable and indelible. Beyond that, Tesla has brand and operational risks. Being willing to take Bitcoin again would open Tesla up to scrutiny of its ESG credentials, financial volatility and more regulatory complications. Tesla’s reputation as an eco-innovator allows for little margin of error, and no room for greenwashing claims. The Future for Bitcoin and Tesla
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Bitcoin’s cleaner reputation is coming into focus and it does matter for widespread adoption. Should Tesla one day return to accepting Bitcoin payments, it may show the world that there is a way for crypto mining and sustainability to both exist. It would also serve to justify the effort miners have made to clean up the energy they consume. Musk, however, appears to be holding out for more consistent growth in renewables and independent verification from multiple data sources. Until then, Tesla is likely to play it safe. Conclusion, Bitcoin Is Cleaner, but Not Clean Enough Yet
Bitcoin has moved a long way from its days of being so coal reliant. More than half of the energy that it uses is now derived from clean and low carbon sources, bringing the company closer than ever to Tesla’s green threshold. But for Musk, data integrity, coherence and clarity mean as much to him as the numbers. At such time, we intend to use it for transactions in jurisdictions as allowed and subject to applicable laws.” Until there’s a high percentage of clean energy usage by miners with a positive future trend, Tesla won’t allow Bitcoin payments, according to the statement: “Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. Even then, the conversation about sustainability and technology with respect to crypto shows that crpto’s march toward a greener future is very real and gaining momentum.
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