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ALGO · 6w

ALGO included in short list of possible Tesla contenders

On May 13, Elon Musk sent shockwaves across the crypto markets by revealing that Tesla will no longer accept any BTC payments for cars until Bitcoin mining becomes more environmentally sustainable.

Musk notes that while Tesla waits for Bitcoin to move to renewable energy, the firm will be looking at “other cryptocurrencies” that use less than 1% of Bitcoin’s energy per transaction.

Tesla & Bitcoin— Elon Musk (@elonmusk) May 12, 2021

The tweet sent much of the crypto community into a frenzy of speculation as to what other crypto assets Tesla may be exploring.

Social influencer “The Cryptic Poet,” told his 45,000 Twitter followers that he predicts Tesla will “either use ETH or XRP,” however user “Massimo” pointed out that if Tesla uses ETH in its current state — which uses Proof-of-Work just like Bitcoin does — it might as well be “staying with BTC.”

My prediction: Tesla will select either use ETH or XRP.— The Cryptic Poet (@1CrypticPoet) May 12, 2021

According to an analysis by TRG data centers, Bitcoin is estimated to average around 700 kilowatt-hours, or KWh, per transaction. While it uses around as much power each year as the Netherlands, it's annual carbon footprint is closer to Singapore's according to Digiconomist, presumably due to the use of cheap renewable power for a considerable proportion of mining. (Note: estimates of power consumption per transaction are controversial, so they are simply used here as a very rough comparative tool).

Ethereum and PoS

Ethereum consumes an estimated 62.56 KWh, per transaction. The Ethereum network is currently secured using the same energy-inefficient consensus method as Bitcoin — Proof-of-Work, or PoW. Digiconomist estimates the Ethereum’s network’s annual carbon footprint is comparable to that of the country Sudan.

However, these issues are set to be  resolved with the network’s forthcoming transition to ETH 2.0, which will introduc...

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