[Bitcoin Now] Rebounds to 55 Million Won Range... Musk Faces Rebuttal on Environmental Destruction Claims

Arc Investment "Bitcoin Mining Ultimately Promotes Renewable Energy Development"
Galaxy Digital "Bitcoin Network Consumes Less Power Than Traditional Financial Systems"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Bitcoin, the representative cryptocurrency that had fallen to the 51 million KRW range the previous day, rebounded to the 55 million KRW range. Optimists directly refuted Tesla CEO Elon Musk's claim that Bitcoin harms the environment.

According to the domestic cryptocurrency exchange Upbit, as of 2:06 PM on the 18th, Bitcoin recorded 55.58 million KRW, up 2.83% compared to the previous day. It had fallen for four consecutive trading days since the 14th, dropping from the 70 million KRW range to 51.38 million KRW the previous day, but then rebounded.

While CEO Musk claims that Bitcoin pollutes the environment, Bitcoin optimists launched a counterattack. Earlier on the 12th, Musk announced that he would suspend Bitcoin payment services because Bitcoin mining excessively uses fossil fuels. According to the US economic media Business Insider on the 17th (local time), Yassin Elmandjra, a researcher at US asset management firm ARK Investment, explained in a report that Musk's claim was incorrect. The report's main point is that Bitcoin mining, which consumes a lot of electricity, leads to huge profits for power companies, thereby ultimately promoting the development of renewable energy.

ARK Investment has defended Bitcoin alongside CEO Musk in the past. When Tesla disclosed in February that it had purchased about 1.5 billion USD (approximately 1.6981 trillion KRW) worth of Bitcoin, Cathie Wood, CEO of ARK Investment, evaluated that "using Bitcoin as a hedge against losses is wise." Since then, ARK Investment has invested 10% of its total assets under management in Bitcoin.

Cryptocurrency specialist investment firm Galaxy Digital also refuted claims by stating that Bitcoin is eco-friendly. According to Business Insider on the 17th, Galaxy Digital stated in a report, "The annual power consumption of the existing banking system is 263.72 TWh (terawatt-hours), whereas the entire Bitcoin network consumes 113.89 TWh," and argued that "the existing financial system consumes more power because it is not transparent." Michael Novogratz, CEO of Galaxy Digital, is a leading Bitcoin optimist who claims that Bitcoin will surpass gold's market capitalization.