Analysts at Bank of America have converted Bitcoin’s carbon footprint to cars. But they also have other arguments against cryptocurrency.
Unclean investment: The US electric car manufacturer Tesla recently purchased a large amount of Bitcoin. The action is controversial from a climate protection perspective because of the high computing power required for cryptocurrency. Bank of America has related Bitcoin investments to internal combustion vehicles.
Investors concerned about environmental aspects of their investments should “pay attention to Bitcoin’s enormous environmental costs,” according to a Bank of America report titled “Bitcoin’s dirty little secrets.” As the authors calculated, buying $1 billion worth of Bitcoin releases as much carbon dioxide as 1.2 million internal combustion engine vehicles in a year.
The Tesla share had recently slumped – to the delight of short-sellers. Now the stock is taking off again. The reason for the upward price is probably the same as that which is driving the bitcoin price.
Over the past four weeks, Tesla’s share price has fallen from just under $850 to as low as $550. But that’s after a near-unprecedented 2020 rally that had made Tesla the most valuable automaker and CEO Elon Musk the richest person in the world. The sharp drop saw the electric carmaker lose around $277 billion in market capitalization. Currently, however, things are looking up again.
Tesla share: Strong gain after slump
On Monday, the Tesla share had lost another 6.5 percent, but on Tuesday, the stock was marked by a – possibly only temporary – recovery. In the early afternoon of Tuesday, New York, the stock posted a strong gain of up to 18 percent on the Nasdaq tech exchange. The stimulus for this renewed price explosion could be the same as currently driving the bitcoin price up the 1.9 trillion dollar aid package passed in the US.
“In retrospect, it was inevitable.” The words Elon Musk tweeted in late January 2021 make quite a bit of sense in retrospect. Tesla is now the most valuable company globally that has made a billion-dollar investment in Bitcoin and will help cryptocurrencies further into the mainstream. So Tesla will continue to invest in Bitcoin, and it will accept crypto assets as payment in its stores in the future.
This news, hidden in a document for the US Securities and Exchange Commission (SEC), has propelled Bitcoin to new heights. On Tuesday night, BTC grew to as high as $47,600. That represents a recent price increase of nearly 20 percent in 24 hours and a gain of almost 35 percent in a week. These hefty gains benefit retail investors and those companies (e.g., MicroStrategy, Square, PayPal, etc.) that have put a lot of money into Bitcoin as a gold alternative in recent months as institutional investors.
Dogecoin was actually intended as a meme. The cryptocurrency with the symbol of the Shiba Inu was created without a fixed limited money supply. By definition, there is an infinite amount of DOGE, which runs counter to the idea that cryptocurrencies are valuable because of their little money supply.
Dogecoin enjoys a small rally every year, which is usually accompanied by more or less hype on social media. In the recent past, the price was boosted by Elon Musk’s tweets, who did not want to give any financial advice but nevertheless revealed himself as a fan.
In the last few hours, the DOGE price literally exploded, and now many experts are perplexed by the renewed phenomenon.