Why Elon Musk’s sudden gesture of goodwill to the crypto community?

Elon Musk just slammed Bitcoin for not being environmentally friendly ……

Why Elon Musk's sudden gesture of goodwill to the crypto community?

Today, Tesla and SpaceX CEO Elon Musk tweeted that he has met with mining companies who have pledged to report on current and planned renewable power use and encourage industry-wide implementation. Elon Musk met with a group of North American mining companies, who agreed to form a Bitcoin Mining Council to improve transparency in energy use and accelerate global sustainability initiatives.

One suddenly wonders if this is a gesture of goodwill to the crypto community, given that just a while ago Elon Musk railed against Bitcoin for being environmentally unfriendly.

It is reported that Argo Blockchain, Blockcap, Core Scientific, Galaxy Digital, Hive Blockchain, Hut 8 Mining, Marathon Digital Holdings and Riot Blockchain’s Representatives from Argo Blockchain, Blockcap, Core Scientific, Galaxy Digital, Hive Blockchain, Hut 8 Mining, Marathon Digital Holdings and Riot Blockchain participated in the meeting. The companies agreed to form an organization to advance the standardization of power reporting, pursue corporate environmental, social and governance performance, and work together to foster and promote market growth. Peter Wall, CEO of publicly traded bitcoin miner Argo Blockchain, said the ‘Bitcoin Mining Council’ led by Elon Musk and MicroStrategy CEO Michael Saylor will not change the code or homogeneity of bitcoin and will not distinguish between clean and unclean bitcoin. He stated.

“We’re not going to talk about the code or block size of Bitcoin or do anything to change the nature of Bitcoin. We all like Bitcoin the way it is now, this decentralized permissionless system.”

In response to questions about backroom negotiations, Peter Wall also joked.

“This is not a new OPEC. this organization just helps everyone join hands and negotiate together. We are all independent, decentralized miners who have formed a voluntary organization like this just to influence each other and move the industry forward.”

Many were surprised because just two weeks ago on May 13 Elon Musk tweeted a tirade against Bitcoin, saying at the time that Tesla was suspending Bitcoin payments due to concerns about Bitcoin’s impact on the environment. Cryptocurrency is a great idea and we believe it has a bright future, but that can’t come at a huge environmental cost. Tesla will not sell BTC and we will continue to use it for transactions once it transitions its mining methods to sustainable energy, and are also currently considering using cryptocurrencies with lower energy consumption (<1% of Bitcoin’s energy consumption).

Since the cryptocurrency market is very sensitive, the Bitcoin-based cryptocurrency market plummeted when Elon Musk released these comments, with the total cryptocurrency market cap having evaporated $1 trillion in the past two weeks.

So, why is Elon Musk showing goodwill to the cryptocurrency community?

In fact, as the world’s richest man, Elon Musk is already one of the most prominent opinion leaders in the cryptocurrency industry, and despite his previous comments that Bitcoin is “not environmentally friendly,” he quickly reaffirmed his loyalty to cryptocurrencies and his preference for this emerging asset in a tweet in response to a friend on May 22. Musk stated.

“The real battle is really between fiat currencies and cryptocurrencies, and all in all, I support the latter.”

On the other hand, Elon Musk’s previous views on Bitcoin’s use of large amounts of energy to achieve decentralization actually make a little sense, and he has previously criticized Bitcoin’s centralization, noting that Bitcoin is actually highly centralized, with the vast majority of computing power controlled by a handful of mining (or arithmetic) companies.

Tesla still stopped the Bitcoin payment method in early May essentially still for environmental purposes, but Elon Musk believes that other cryptocurrencies could solve Bitcoin’s woes, such as dogcoin, which he believes would ideally see an increase in transaction speeds and a 100-fold drop in transaction fees if the block size were expanded tenfold. Elon Musk has reportedly started talks with Dogcoin protocol developers to increase the throughput of the Dogcoin blockchain and make it more efficient and decentralized than proof-of-work (PoW), and by optimizing and improving Dogcoin, he hopes to achieve his stated goals in the near future.

Frankly speaking, Elon Musk is not “stubborn” compared to Vitalik Buterin, who has been in the cryptocurrency industry for years, but he is just actively trying to change the way cryptocurrencies work.

For example, to express his displeasure with Elon Musk, Vitalik Buterin published a paper on blockchain scalability limits, pointing out that a dramatic increase in blockchain scalability and throughput could lead to extreme centralization problems and compromise the fundamental properties of the blockchain, and emphasizing the need for decentralized management, especially to eliminate the risk of single points of failure in the network, and to enjoy protection from coordinated attacks. Following this, enjoying protection from coordinated attacks, decentralization cannot be achieved without the freedom of ordinary users to run nodes.Vitalik Buterin wants to make it a common activity by enabling ordinary users to run nodes, and he asserts that sharding can facilitate many centralized blockchains to achieve scalability.Vitalik Buterin predicts, based on the ethereum network’s Vitalik Buterin predicted, based on the current state of the ethereum network, that a sliced ethereum could process one million transactions per second and ensure complete security of the blockchain.

But Elon Musk’s response was very “interesting” and consisted of one simple sentence.

“Vitalik Buterin is afraid of dogcoin.”

There’s no denying that Elon Musk is almost certainly the first person in the world to really push cryptocurrency into the mainstream after Tesla announced earlier this year that it was buying Bitcoin for $1.5 billion.

By pushing hard for dogcoin development and forming a bitcoin mining committee, Elon Musk seems to have proven himself once again to be a big proponent of cryptocurrencies. So, yes, Elon Musk is indeed a proponent of cryptocurrencies, but knowing his thought process, you might get the impression that he is not the same as other cryptocurrency proponents.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/why-elon-musks-sudden-gesture-of-goodwill-to-the-crypto-community/
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