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Depending on the study , the annual carbon emissions from the electricity required to mine Bitcoin and process its transactions are equal to the amount emitted by all of New Zealand. Or Argentina. There is also an electronic waste problem associated with bitcoin mining, argues Alex de Vries, an economist who created the Bitcoin Energy Consumption Index and tracks the unintended consequences of digital trends. Bitcoin mining is done with highly specialized equipment that has a short life span, and the tools cannot be repurposed, making investment in the digital currency even more problematic from an environmental perspective, he told The Times.

The announcement on Wednesday confirms speculation in the crypto community that Tesla would not simply contract out payments to a third-party processor and treat Bitcoin like dollars. Analysts are pleased with the symbolism at least. Business Tesla will accept Bitcoin as payment, Elon Musk says. Liquidity and rising fees have been a problem for the airline. He said,. It was reported in that Russian carrier Aeroflot was considering accepting Bitcoin — an interesting move, showing that it is not just limited to newer or more innovative airlines.

Bitcoin and its clones

It is not clear yet whether it is fully in use, though. Flights with many more airlines can be booked through third-party agents that convert Bitcoin to other currencies at the time of booking. Several others have followed.

Bitcoin: "Perdí más de medio millón de dólares por culpa de una cuenta falsa de Elon Musk"

Use is not limited to airlines, with benefits for airports as well. Increasing ways to take payments can only be a positive for retail outlets, and again there are the same advantages of lower transaction costs and exchange issues. As reported by TravelMole at the time, airport general manager Roel Hellemons, explained the reasoning:. So far, though, airport use is minimal.

No other airports seem to have introduced widescale Bitcoin usage. A handful of airlines have moved into Bitcoin, but uptake is slow.

Will Bitcoin Be The Future Of Flying And Aviation? - Simple Flying

There are still major challenges of cryptocurrencies limiting their acceptance. Stability and regulation stand out. No organization regulates the usage or value of Bitcoin. There have also been high levels of speculation and trading affecting the price.

There have been large swings in value, both up and down, over recent years. This sort of volatility is not something everyone wants, and certainly not airlines in the current environment. Companies usually mitigate the risk by converting Bitcoin to other currencies. They may also hedge a margin over the current rate to protect against swings. Bitcoin as a payment currency for airlines has been a main focus in the industry so far. But there are other potential uses of the blockchain technology that cryptocurrencies are built on. IATA released a report in looking at several opportunities across the aviation industry.

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The immutable trusted data records that underly blockchain have application in airline logistics, baggage tracking, cargo management, and even passenger identification. Trusted data between the many parties involved over the aircraft lifecycle could reduce costs and risks significantly. Simple Flying took a look at one major example of blockchain in use recently.

Gazpromneft-Aero has completed tests of a blockchain-based refueling system. This allows safe instant payments reducing processing from several days to just seconds and secure digital tracking of contracts and deliveries. Bitcoin use in aviation is something of a niche market at the moment.

Facebook's Libra cryptocurrency explained

There are certainly opportunities to reduce transaction costs and maybe even to attract new business. Airlines want this and, of course, are not afraid to move into areas of new technology. We have seen aviation take a leading role in developing online ticketing in the s and s. And more recently, it is becoming a major adopter of biometric technology. And in areas like digital check-in, mobile boarding passes, and digital booking and management, airlines constantly look for ways to offer more and reduce costs.

With this in mind, it seems likely we will see use expand across airlines as the popularity, and reputation, of Bitcoin and other cryptocurrencies, grows. The past year or more has certainly not been the time for this. Airlines are struggling to get aircraft in the air and earn any revenue in many cases. Expanding and marketing a new niche payment method has hardly been a priority.

Tesla will accept Bitcoin as payment, Elon Musk says.

But as the market picks up in , and with Bitcoin making headlines with its new highs, perhaps more will decide now is the time to give it a go — especially if they can minimize the risk. Bitcoin is starting to make a difference in many industries. Do you think aviation will be one of them, or will it remain a niche offering for some time?

Let us know your thoughts in the comments. Journalist - With almost a decade of experience in the publishing sphere, Justin has built up a deep understanding of the issues facing aviation today. With a keen interest in route development, new aircraft, and loyalty, his extensive travels with airlines such as British Airways and Cathay Pacific has given him profound direct comprehension of industry matters. Be in the know. Justin Hayward Journalist - With almost a decade of experience in the publishing sphere, Justin has built up a deep understanding of the issues facing aviation today.

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