On Wednesday, 12 May, Elon Musk announced that Tesla would now refuse to use bitcoin as a method of payment owing to the unease surrounding its impact on the environment. Cryptocurrencies, growing in popularity and widely invested in, have often been ignored for their fossil fuel usage, which the industry in China on just its own is forecast to surpass even the emissions of the Czech Republic and Qatar by 2024.
The announcement by Tesla isn’t just about Elon Musk’s Twitter post and its effect on the stock market as a descending line on a screen. It is part of a general trend that views with growing concern the usage of energy, with cryptocurrencies being only one symptom of the general disease that is climate change. This general trend sees itself manifested in the focus by numerous in electrical energy as the future source of power as something to be supplied worldwide.
There are other indications that suggest such a trend may truly be solidifying itself other than Tesla’s willingness to forego a viable currency. That is, the actions that states have taken to move their nations in the direction of electrical energy and the implications this has for the industry as a whole. A focus by China, most notably, on attaining to carbon neutrality by 2060 has resulted in massive investment into electrical energy as a whole.
In fact, the power has demonstrated its dedication to attaining this optimistic goal in pursuing electric energy heavily. In 2018, about 1.3 million electric vehicles were sold in China, with predictions forecasting millions more as a recent mandate requires that electric vehicles must make up 40% of car sales by 2030. The success of electric vehicles in the country is a key indicator of the potential of this emerging market.
Individual investors too, have flocked to the opportunities that electric energy will provide for future consumption as a good alternative. Warren Buffet, infamous for his success at investing and for his leadership of the company Berkshire Hathaway, is also a known backer of the automaker BYD, which outsold all other rival firms with up to 130,970 units sold in 2020.
In backing BYD, he has taken steps in a direction that seems to confirm the growing importance of electric energy for not only his own company, but what will no doubt be the case for investors worldwide.