Elon Musk's concern that bitcoin primarily relies on fossil fuels for its energy needs is "misguided," Ark Invest analyst Yassine Elmandjra said in a Monday note.
Since then, bitcoin fell to a new cycle low of $42,000, and is down 32% from its record high. The cryptocurrency did stage a brief bounce after Musk clarified that Tesla had not sold its more than $1 billion bitcoin position it bought in January.
But Ark Invest believes bitcoin can accelerate a green-energy revolution and become "a net positive for the environment," the note said.
Bitcoin mining "could impact the amount of renewable energy provisioned to the grid by transforming intermittent power resources into baseload generation by way of energy storage... renewables would be able to satisfy only 40% of the grid's needs in the absence of Bitcoin mining but 99% with the commercial 'subsidies' associated with Bitcoin mining," Elmandjra explained.
NewsletterSIMPLY PUT - where we join the dots to inform and inspire you. Sign up for a weekly brief collating many news items into one untangled thought delivered straight to your mailbox.
Next Story
Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
One of the world's only 5-star airlines seems to be considering asking business-class passengers to bring their own cutlery
Experts warn of rising temperatures in Bengaluru as Phase 2 of Lok Sabha elections draws near
Axis Bank posts net profit of ₹7,129 cr in March quarter
7 Best tourist places to visit in Rishikesh in 2024
From underdog to Bill Gates-sponsored superfood: Have millets finally managed to make a comeback?
7 Things to do on your next trip to Rishikesh
