Tesla has always been at the forefront of new technologies. The cryptocurrency segment is awing the world for now. This is why, the world’s largest EV manufacturer, has now shown interest in setting up a solar and megapack farm to power a Bitcoin mining facility.
For this project Tesla is undergoing a partnership with:
- Blockstream;
- Blocks (which was formerly known as Square).
Not The First Step From Tesla Regarding Bitcoin
This is not the first time that Tesla is in the news related to Bitcoin. In 2021, Tesla invested €1.38 billion in this principal cryptocurrency of the world.
Soon afterwards, it also started accepting it as a mode of payment. This step was, however, short-lived and the payment option was removed by Tesla.
The reason Tesla stated for this step was that it was concerned about the use of fossil fuels for Bitcoin mining.
Tesla was not the only one to say this. Rather several diehard Tesla fans had mentioned this issue when the company started accepting Bitcoin payments.
Now for the first time, Tesla has decided to play a direct role in the energy required for Bitcoin mining and transactions.
Specifics Of The Energy Sources
The latest collaboration will feature the following power sources for Bitcoin and will be located in Texas:
- A 3.8 MW solar farm;
- 12 MWh mega pack system for powering up the setup.
The construction for the setup has already started and both parties in the partnership seem excited.
This system will energize 30 Petahashes per second and will be 100% solar powered which means that it will be extremely environment friendly.
What Are The Advantages & Disadvantages
The advantages of the partnership include:
- Tesla is now playing its role in the rapidly growing cryptocurrency segment;
- This also implies that newer avenues have opened up for other parties in the segment. They will now be forced to mine Bitcoin in an environmentally friendly manner.
However, the only disadvantage, for now, seems that the setup looks pretty small at what it aims to achieve.
If Tesla wants to accept Bitcoin as a form of payment, it will have to put in more effort, either alone or in collaboration with other players in the market.
What Is The Blockchain Technology?
Blockchain technology, which is at the heart of all cryptocurrencies, is a well-defined structure that records all transactions that occur in the system.
Unlike the conventional mode of payments, this is a decentralized system in which every blockchain participant actively plays his role in maintaining the record of all transactions.
It is due to this decentralized nature that blockchain technology is considered extremely safe as no single entity or party maintains the ledger.
What Are The Future Prospects?
The total value of all cryptocurrencies combined is estimated to be around €2.29 trillion. This exemplifies that the world is rapidly transitioning to this new mode of payment.
Tesla is trying to play its part by accepting Bitcoin as a payment platform and by providing a more sustainable source of power for Bitcoin mining.
This will also encourage other major automakers to do the same. So, if they do this, we may see a significant shift away from conventionally powered Bitcoin mining and toward a greener, more sustainable power sources, which is urgently needed.
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