Misconstruing the Miners: Bitcoin Priorities and Economics

Misconstruing the Miners: Bitcoin Priorities and Economics

News cycles generally operate on negative output, and there is no exception for cryptocurrencies. The potentially revolutionizing digital force most recently took a big reputation (and price) hit, partially due to news that China would be banning any and all crypto-related activities.

This development was particularly notable and damaging to cryptocurrencies, as much of the world's bitcoin supply is mined in that country. Largely, China cited environmental concerns as the ostensible reason for the ban. Whether or not the concept of a decentralized anonymous currency with the potential to render central banks obsolete was on China's list of favorite things, is still debatable.  

Around the same time, Elon Musk, CEO of Tesla, Inc. (TSLA) abruptly pulled the plug on permitting Tesla purchases with bitcoin. Musk cited bitcoin's energy usage as well as reason for the decision. In contrast to China, Musk stated he would begin accepting bitcoin once miners use around 50% renewable and clean energy.