- Bitcoin has rebounded above $40,000 for the first time in almost a week.
- The price spike came in the wake of the Bitcoin Mining Council formation.
- Council founders include Elon Musk, Michael Saylor, and several Bitcoin miners.
Bitcoin rose above the $40,000 mark for the first time since May 19. The price spike came after several Bitcoin enthusiasts came together to form the Bitcoin Mining Council on May 24.
Prior to that the top crypto had dropped below the $30, 000 support level. Also, Bitcoin sent the entire crypto market tumbling after Tesla and SpaceX CEO Elon Musk announced that Tesla would no longer be accepting Bitcoin payments. Musk noted that the decision was made due to how Bitcoin’s high energy use negatively impacts the environment.
The news led to more woes, for example, Greenpeace stopped accepting Bitcoin for the same reason. In addition, China announced plans to ban Bitcoin mining. Notably, China currently accounts for over 50% of the blockchain’s hashrate.
In response to the spiralling situation, Elon Musk, Michael Saylor (MicroStrategy CEO), and several North American Bitcoin miners met together. The closed door meeting resulted in the formation of the Bitcoin Mining Council. The attendees, who represent about 10% of Bitcoin’s hashrate, became the council’s founding members.
Saylor noted that the council aims to help shape the narrative around the top crypto’s energy consumption. Particularly, to “manager concerns, especially from uninformed parties.” In fact, prior to the council formation no one was sharing how much energy Bitcoin mining was using. All available reports were from external parties that have been accused of bias by industry participants.
Speaking on the meeting, Saylor shared,
“I think Elon’s first-order ask was ‘hey, can we come up with a way to publish or [boost] transparency for bitcoin mining energy usage.’ I think the first step is, let’s come up with a protocol for us to publish energy information in a way that we can share it with the world and then work together to make sure that we pursue sustainable energy goals.”
Needless to say, the crypto’s price responded positively to the news despite some criticism regarding the closed nature of the initial meeting.