Tesla faces scrutiny over carbon costs of bitcoin and vehicle range

[MEDICALJMP]

Tesla faces scrutiny over carbon costs of bitcoin and vehicle range

https://www.axios.com/tesla-crypto-...usk-0f107295-d4de-49d2-83de-793704a2add7.html
Feb. 12, 2021
By Ben German

Tesla is riding high these days, but two developments could create reputational risks for the world's most valuable car company.

Driving the news: Tesla is beginning to face criticism over the climate effects of its big new investment in bitcoin and the decision to accept it as payment — even though electric vehicles are lower-CO2 alternatives to gasoline vehicles.

Why it matters: Bitcoin "mining" to process transactions is very energy-intensive, so promotion of its use could add to its carbon footprint.

• Though it's worth noting that some estimates of bitcoin energy use are probably way too high and there are ways to make mining cleaner too.

What they're saying: Ben Dear, CEO of the sustainable investment firm Osmosis Investment Management, tells Reuters: “We are of course very concerned about the level of carbon dioxide emissions generated from bitcoin mining.”

• He said Tesla should disclose energy consumption associated with its bitcoin ventures.
• More broadly, some analysts see Tesla's decision to accept bitcoin as potentially widening its use in transactions more broadly.
• Reuters says Tesla's bitcoin backing could "turbo-charge global use of a currency."
• The Verge is also reporting on the climate angle.

Driving the news, part 2: New research from Edmunds finds that five Tesla models they tested showed less range per charge than the vehicles' EPA estimates.

• The analysis, which Edmunds notes is designed as a "real-world complement to the EPA's laboratory-based process," found the vehicles had 2.5%-17.4% less range.
• The one with 17.4% less was a 2018 Model 3 Performance edition, which had 256 miles of range instead of 310 in the EPA estimate.

But, but, but: Tesla still had two of the five longest-range vehicles among the 15 models Edmunds tested.

• The biggest difference between the EPA and Edmunds findings was with the 2020 Porsche Taycan 4S, which went 59% further in the Edmunds test at 323 miles.

Of note: Gasoline-powered vehicles can also underperform their EPA estimates, and in general, mileage and range are influenced by all sorts of conditions and driving styles.

The bottom line: Tesla's on a good run, having become consistently profitable. But the EV market is getting more competitive, so these topics are worth keeping an eye on.

 

[MEDICALJMP]

India to ban cryptocurrency investment completely: Report
Download PDF / Print

by Yogita Khatri
February 12, 2021, 4:00AM EST · 2 min read


Quick Take

• The Indian government is said to be levying a complete ban on crypto investment.
• Existing investors will reportedly get a 3-6 month transition period for liquidating their investments.

The Indian government is said to be levying a complete ban on cryptocurrency investment.
BloombergQuint reported the news on Thursday, citing an unnamed "senior Finance Ministry official." The ban won't be imposed overnight, according to the official, who said the government would give a three-to-six month transition period for existing investors to liquidate their investments.

Since India's central bank doesn't back cryptocurrencies, the government will ban their usage in all forms through a law that will be introduced in Parliament, said the official. The ban would also restrict crypto trading via foreign exchanges, per the report.

India's crypto law will be modeled on China's crypto regime, which has effectively banned crypto trading, according to the official. China, however, has only banned fiat-to-crypto trading since 2017. Crypto-to-crypto trading is still allowed in the country.

India's proposed "The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021" is listed for introduction in the ongoing Budget session of Parliament, which concludes on April 8, with a recess between February 15 and March 8.

The bill seeks to prohibit all "private cryptocurrencies" in India. The definition of private cryptocurrencies and the final text of the bill is not known yet. Still, India's finance Minister Nirmala Sitharaman earlier this week suggested that private cryptocurrencies include all digital currencies apart from those issued by a central bank.

According to the official quoted above, the proposed bill "will be soon sent to the Union Cabinet for approval."

Earlier this week, India's junior finance minister Anurag Thakur also said that the bill "is being finalized and would be sent to the cabinet soon."

As The Block has previously reported, the legislative process is lengthy in India. Once a bill is moved for consultation in the cabinet, it goes through various ministries for feedback. Once this process concludes, the bill then moves to Parliament. The Parliament has its own approval processes, including getting nods from the Lok Sabha (House of the People) and the Rajya Sabha (Council of States). Once the bill passes the Parliament, it then goes to the president of India for a final signature.

However, if the cabinet wants a specific bill to get passed, it can go for the ordinance route. Ordinances enable the Indian government to take immediate legislative action. Last week, there were reports that the government is likely to pass a cryptocurrency bill via ordinance.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

https://www.theblockcrypto.com/post...mpletely-report?utm_source=rss&utm_medium=rss

 

[Crissa]

Until crypto is measured for efficiency against other currencies, it probably shouldn't be used.

It's also one heck of an example or irrational exuberance.

-Crissa