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Proof-Of-Stake Coins Surge After Musk Trashes Power-Hungry Bitcoin

In brief

  • With Proof of Stake (POS), cryptocurrency miners can earn more crypto if they hold more coins.
  • Proof of Stake (POS) was created as an alternative to Proof of Work (POW), which is the consensus algorithm that Bitcoin uses.
  • Several coins that use alternative consensus algorithms to Bitcoin have increased in value.

In a tweet earlier this week, Musk announced that Tesla had suspended vehicle purchases made in Bitcoin. “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” he said. 

Since that tweet, the Tesla CEO doubled down, saying that it is “high time for a carbon tax,” and that while he strongly believes in crypto, “it can’t drive a massive increase in fossil fuel use.” 

His U-turn on Bitcoin caused its price to drop from approximately $57,000 to as low as $48,000. But other cryptocurrencies, which use alternatives to Bitcoin’s energy-intensive proof-of-work algorithm, have benefited from Musk’s announcement. 

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