Uber CEO Commits to Accept Bitcoin and Cryptocurrency

• Uber CEO has confirmed the ride hailing giant might accept Bitcoin in the future.
• Top reasons for drawbacks cited is the coin’s high energy usage.

Dara Khosrowshahi, the Chief Executive Officer (CEO) of popular ride-hailing company Uber has announced that the company would accept cryptocurrencies like Bitcoin (BTC) as a form of payment for its services in the future.

He made this announcement during a TV program where he was asked if Uber will accept Bitcoin and crypto payouts. This news is an indication that BTC acceptance and adoption is going mainstream. It highlights the growing trend of digital currency adoption across several industries.

The growing interest of such top companies in crypto is expected to trigger awareness in the digital asset ecosystem. At the same time, it could boost the confidence and trust of the public in blockchain technology, thereby accelerating the rate of mainstream crypto adoption. Crypto enthusiasts are positive that Uber’s decision to embrace the technology will attract more businesses to the industry.

In his response to the question, Khosrowshahi agreed that Bitcoin and some other digital assets are valuable as a store of value. However, he pointed to the fact that the “bartering operations” behind these cryptocurrencies are expensive and not suitable for the environment.

By bartering operations, the Uber CEO was referring to the mining process of cryptocurrency. Bitcoin mining is usually cost intensive because of the large mining rigs required to complete the process and the high use of electricity.

Uber Bitcoin Adoption: Environmental Concerns

In many regions where it is done, crypto mining has a drastic effect on the environment. For instance, in Cameroon, it has been evident that the process contributes to deforestation, Carbon dioxide emission, and excess water usage from overheating amongst other adverse effects.

Considering these drawbacks, Khosrowshahi clarified that when the mechanism becomes cleaner, less expensive, and more environmentally friendly, Uber will jump on its adoption.

Electric automobile manufacturer Tesla discontinued Bitcoin payment for the same reasons Uber is currently presenting. Tesla’s CEO, Elon Musk highlighted the energy usage in Bitcoin mining, thus, expressing environmental concerns. In effect, Musk sold off a sizable portion of Tesla’s BTC holdings between April and June 2022. However, the company has recently re-ignited interest in Bitcoin payment alongside Dogecoin (DOGE).

Gradually, BTC payment is gaining traction across many sectors. The United States Senate introduced an initiative earlier this year dubbed ACCEPT Resolution, an acronym for Adopting Cryptocurrency in Congress as an Exchange of Payment for Transactions Resolution.

Based on the drafted bill, the resolution will require that vending machines, and food vendors on Capitol Hill accept Bitcoin as a medium of payment.

Also, gambling sites are actively implementing Bitcoin payments in their systems. The decision to use BTC as a payment alternative is tied to several reasons including the decentralized nature of the token, removing the need for a middleman or an intermediary. At the same time, it offers anonymity and privacy. Therefore, it is little wonder that its adoption is spreading fast.

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