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Elon Musk wants a greener bitcoin. Has he got a plan or a pipedream?

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Elon Musk says Tesla won’t use or accept bitcoin until he can be sure it’s produced sustainably. He may be waiting some time.

Musk announced his new position in a major U-turn on Wednesday, prompting speculation among some experts about whether he had a plan to wean the crypto industry off the fossil fuels that power “mining,” the energy-intensive process that creates coins.

Tesla could itself take an active role in helping make bitcoin greener by investing in new projects aimed at boosting the use of renewable energy in mining, according to more than a dozen cryptocurrency specialists interviewed by Reuters.

“Musk and Tesla certainly have the resources to support existing efforts to fully move bitcoin to renewable energy,” said Diana Biggs, CEO of crypto startup Valour.

But such ventures could take years to get off the ground.

Another potential route is for Tesla to shift from bitcoin to more eco-friendly digital currencies that don’t rely on mega-computers spawning new tokens, according to the experts.

Yet this too presents major headaches, they say, not least gaining broad crypto industry agreement for software changes and resolving regulatory concerns over smaller coins.

Musk tweeted that while Tesla would no longer accept payment in bitcoin – two months after announcing that it would – the company wouldn’t sell its bitcoin holdings, instead intending to use them when mining became greener energy.

Tesla is also looking at other cryptocurrencies that use less than 1% of the energy burned by bitcoin, he added.

The industry experts interviewed by Reuters said they thought it was unlikely that Musk had been blissfully unaware until now of the environmental concerns surrounding bitcoin production.

The move may represent an attempt to bolster Tesla’s environmental credentials amid growing competition in the electric vehicle sector, said Sasja Beslik, head of sustainable business development at Bank J. Safra Sarasin in Zurich.

“My indication of this is that it is a way to further strengthen the brand,” he said. “It’s up to them to hold any currency they want. But given the fact that it has a heavy CO2 footprint … it is a challenging thing.”

Tesla did not immediately respond to a request for comment.

GREENER OPTIONS?

After his original tweet, Musk followed the next day with a chart showing bitcoin’s power consumption. “Energy usage trend over past few months is insane,” he wrote.

Yet environmentalists have criticised bitcoin’s energy consumption and its reliance on fossil fuels for years, not months.

“As it stands, the use of bitcoin doesn’t align with Tesla’s own mission statement,” said Alex De Vries, founder of research platform Digiconomist.

“That’s not something that suddenly happened during the past two months in which Tesla first decided to accept bitcoin. The network was already running on fossil fuels like Chinese coal – nothing has really changed in such a short timeframe.”

Bitcoin mining uses about the same amount of energy annually as Egypt did in 2019, data from the University of Cambridge shows.

Much of it is powered by coal, the dirtiest of all fossil fuels. Chinese miners accounted for about 70% of production, data from the university shows . Many use fossil fuels, switching to renewables like hydropower during the rainy summer months.

 

(Graphic – Bitcoin: Power hungry – )

 

WATERMARKED BITCOIN?

Tesla could invest in greener mining options, said Yves Bennaim, the founder of Swiss crypto think-tank 2B4CH. It could create by itself groups of bitcoin miners that use green energy, or connect customers to mining pools, he added.

Projects globally are looking for ways to shift bitcoin mining towards cleaner energy, or at least to reduce its carbon footprint, from repurposing heat generated by mining using flare gas – a by-product from oil extraction – for crypto mining.

Payments company Square Inc, run by Twitter CEO Jack Dorsey, last year said it would give $10 million https://squareup.com/us/en/press/carbon to support firms boosting the use and efficiency of renewables in the bitcoin sector.

In theory, blockchain experts have said, it would be possible to track which bitcoins have been produced sustainably, also giving Tesla an option to only accept greener bitcoins.

“He can probably invest in some green energy miners and mandate that Tesla will only get paid by greenly mined bitcoin,” said Maya Zehavi, a cryptocurrency and blockchain consultant.

“There’s also been a lot of talk of watermarked bitcoin, splitting bitcoin mined by Western countries and those mined in China and North Korea.”

BITCOIN ALTERNATIVES

Tesla could also switch its focus on cryptocurrencies towards tokens that run on a less power-hungry system for producing new digital coins are created.

Through bitcoin’s protocol, or underlying code, computers hooked up to its network competed against each other to solve complex maths puzzle. The system, known in crypto lingo as “proof of work”, is highly energy intensive.

An alternative protocol lets users create new tokens by committing existing cryptocurrencies to digital contracts – potentially lessening reliance on energy-guzzling computers.

Ether, the second-biggest cryptocurrency, is moving to this system, known as “proof of stake”. Still, many existing coins that use this system are still relatively hard to use at scale, and are less widely known than bitcoin.

“The only real answer is 1. actively investing in renewable mining farms and making mining “greener” or 2. switching to a protocol that is based on proof of stake,” said Larry Cermak, director of research at crypto site The Block.

Cryptocurrencies that consume less energy, such as seventh-largest coin XRP, may present other concerns, experts said.

Investors have worried about XRP since U.S. regulators charged blockchain firm Ripple, a major backer of the cryptocurrency, with an $1.3 billion unregistered securities offering last year. Ripple has denied the charges.

Some have also suggested changing bitcoin’s protocol itself, to lower its power consumption. Yet getting all users in bitcoin’s decentralised network of miners, run by no oversight body, to agree would be challenging, experts warned.

“The whole bitcoin mining ecosystem has invested billions of dollars in hardware,” said Jack Liao, CEO of Chinese mining firm LightningAsic. “How can they change the protocol? Change means a loss of billions.”

 

(Reporting by Tom Wilson and Anna Irrera; Editing by Pravin Char)

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Looking for the next mystery bestseller? This crime bookstore can solve the case

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WINNIPEG – Some 250 coloured tacks pepper a large-scale world map among bookshelves at Whodunit Mystery Bookstore.

Estonia, Finland, Japan and even Fenwick, Ont., have pins representing places outside Winnipeg where someone has ordered a page-turner from the independent bookstore that specializes in mystery and crime fiction novels.

For 30 years, the store has been offering fans of Agatha Christie’s Hercule Poirot or Arthur Conan Doyle’s Sherlock Holmes a place to get lost in whodunits both old and new.

Jack and Wendy Bumsted bought the shop in the Crescentwood neighbourhood in 2007 from another pair of mystery lovers.

The married couple had been longtime customers of the store. Wendy Bumsted grew up reading Perry Mason novels while her husband was a historian with vast knowledge of the crime fiction genre.

At the time, Jack Bumsted was retiring from teaching at the University of Manitoba when he was looking for his next venture.

“The bookstore came up and we bought it, I think, within a week,” Wendy Bumsted said in an interview.

“It never didn’t seem like a good idea.”

In the years since the Bumsteds took ownership, the family has witnessed the decline in mail-order books, the introduction of online retailers, a relocation to a new space next to the original, a pandemic and the death of beloved co-owner Jack Bumsted in 2020.

But with all the changes that come with owning a small business, customers continue to trust their next mystery fix will come from one of the shelves at Whodunit.

Many still request to be called about books from specific authors, or want to be notified if a new book follows their favourite format. Some arrive at the shop like clockwork each week hoping to get suggestions from Wendy Bumsted or her son on the next big hit.

“She has really excellent instincts on what we should be getting and what we should be promoting,” Micheal Bumsted said of his mother.

Wendy Bumsted suggested the store stock “Thursday Murder Club,” the debut novel from British television host Richard Osman, before it became a bestseller. They ordered more copies than other bookstores in Canada knowing it had the potential to be a hit, said Michael Bumsted.

The store houses more than 18,000 new and used novels. That’s not including the boxes of books that sit in Wendy Bumsted’s tiny office, or the packages that take up space on some of the only available seating there, waiting to be added to the inventory.

Just as the genre has evolved, so has the Bumsteds’ willingness to welcome other subjects on their shelves — despite some pushback from loyal customers and initially the Bumsted patriarch.

For years, Jack Bumsted refused to sell anything outside the crime fiction genre, including his own published books. Instead, he would send potential buyers to another store, but would offer to sign the books if they came back with them.

Wendy Bumsted said that eventually changed in his later years.

Now, about 15 per cent of the store’s stock is of other genres, such as romance or children’s books.

The COVID-19 pandemic forced them to look at expanding their selection, as some customers turned to buying books through the store’s website, which is set up to allow purchasers to get anything from the publishers the Bumsteds have contracts with.

In 2019, the store sold fewer than 100 books online. That number jumped to more than 3,000 in 2020, as retailers had to deal with pandemic lockdowns.

After years of running a successful mail-order business, the store was able to quickly adapt when it had to temporarily shut its doors, said Michael Bumsted.

“We were not a store…that had to figure out how to get books to people when they weren’t here.”

He added being a community bookstore with a niche has helped the family stay in business when other retailers have struggled. Part of that has included building lasting relationships.

“Some people have put it in their wills that their books will come to us,” said Wendy Bumsted.

Some of those collections have included tips on traveling through Asia in the early 2000s or the history of Australian cricket.

Micheal Bumsted said they’ve had to learn to be patient with selling some of these more obscure titles, but eventually the time comes for them to find a new home.

“One of the great things about physical books is that they can be there for you when you are ready for them.”

This report by The Canadian Press was first published on Sept. 15, 2024.



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Labour Minister praises Air Canada, pilots union for avoiding disruptive strike

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MONTREAL – Canada’s labour minister is praising both Air Canada and the union representing about 5,200 of its pilots for averting a work stoppage that would have disrupted travel for hundreds of thousands of passengers.

Steven MacKinnon’s comments came in a statement shared to social media shortly after Canada’s largest air carrier announced it had reached a tentative labour deal with the Air Line Pilots Association.

MacKinnon thanked both sides and federal mediators, saying the airline and its pilots approached negotiations with “seriousness and a resolve to get a deal.”

The tentative agreement averts a strike or lockout that could have begun as early as Wednesday for Air Canada and Air Canada Rouge, with flight cancellations expected before then.

The airline now says flights will continue as normal while union members vote on the tentative four-year contract.

Air Canada had called on the federal government to intervene in the dispute, but Prime Minister Justin Trudeau said Friday that would only happen if it became clear no negotiated agreement was possible.

This report from The Canadian Press was first published Sept. 15, 2024.

Companies in this story: (TSX:AC)

The Canadian Press. All rights reserved.



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As plant-based milk becomes more popular, brands look for new ways to compete

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When it comes to plant-based alternatives, Canadians have never had so many options — and nowhere is that choice more abundantly clear than in the milk section of the dairy aisle.

To meet growing demand, companies are investing in new products and technology to keep up with consumer tastes and differentiate themselves from all the other players on the shelf.

“The product mix has just expanded so fast,” said Liza Amlani, co-founder of the Retail Strategy Group.

She said younger generations in particular are driving growth in the plant-based market as they are consuming less dairy and meat.

Commercial sales of dairy milk have been weakening for years, according to research firm Mintel, likely in part because of the rise of plant-based alternatives — even though many Canadians still drink dairy.

The No. 1 reason people opt for plant-based milk is because they see it as healthier than dairy, said Joel Gregoire, Mintel’s associate director for food and drink.

“Plant-based milk, the one thing about it — it’s not new. It’s been around for quite some time. It’s pretty established,” said Gregoire.

Because of that, it serves as an “entry point” for many consumers interested in plant-based alternatives to animal products, he said.

Plant-based milk consumption is expected to continue growing in the coming years, according to Mintel research, with more options available than ever and more consumers opting for a diet that includes both dairy and non-dairy milk.

A 2023 report by Ernst & Young for Protein Industries Canada projected that the plant-based dairy market will reach US$51.3 billion in 2035, at a compound annual growth rate of 9.5 per cent.

Because of this growth opportunity, even well-established dairy or plant-based companies are stepping up their game.

It’s been more than three decades since Saint-Hyacinthe, Que.-based Natura first launched a line of soy beverages. Over the years, the company has rolled out new products to meet rising demand, and earlier this year launched a line of oat beverages that it says are the only ones with a stamp of approval from Celiac Canada.

Competition is tough, said owner and founder Nick Feldman — especially from large American brands, which have the money to ensure their products hit shelves across the country.

Natura has kept growing, though, with a focus on using organic ingredients and localized production from raw materials.

“We’re maybe not appealing to the mass market, but we’re appealing to the natural consumer, to the organic consumer,” Feldman said.

Amlani said brands are increasingly advertising the simplicity of their ingredient lists. She’s also noticing more companies offering different kinds of products, such as coffee creamers.

Companies are also looking to stand out through eye-catching packaging and marketing, added Amlani, and by competing on price.

Besides all the companies competing for shelf space, there are many different kinds of plant-based milk consumers can choose from, such as almond, soy, oat, rice, hazelnut, macadamia, pea, coconut and hemp.

However, one alternative in particular has enjoyed a recent, rapid ascendance in popularity.

“I would say oat is the big up-and-coming product,” said Feldman.

Mintel’s report found the share of Canadians who say they buy oat milk has quadrupled between 2019 and 2023 (though almond is still the most popular).

“There seems to be a very nice marriage of coffee and oat milk,” said Feldman. “The flavour combination is excellent, better than any other non-dairy alternative.”

The beverage’s surge in popularity in cafés is a big part of why it’s ascending so quickly, said Gregoire — its texture and ability to froth makes it a good alternative for lattes and cappuccinos.

It’s also a good example of companies making a strong “use case” for yet another new entrant in a competitive market, he said.

Amid the long-standing brands and new entrants, there’s another — perhaps unexpected — group of players that has been increasingly investing in plant-based milk alternatives: dairy companies.

For example, Danone has owned the Silk and So Delicious brands since an acquisition in 2014, and long-standing U.S. dairy company HP Hood LLC launched Planet Oat in 2018.

Lactalis Canada also recently converted its facility in Sudbury, Ont., to manufacture its new plant-based Enjoy! brand, with beverages made from oats, almonds and hazelnuts.

“As an organization, we obviously follow consumer trends, and have seen the amount of interest in plant-based products, particularly fluid beverages,” said Mark Taylor, president and CEO of Lactalis Canada, whose parent company Lactalis is the largest dairy products company in the world.

The facility was a milk processing plant for six decades, until Lactalis Canada began renovating it in 2022. It now manufactures not only the new brand, but also the company’s existing Sensational Soy brand, and is the company’s first dedicated plant-based facility.

“We’re predominantly a dairy company, and we’ll always predominantly be a dairy company, but we see these products as complementary,” said Taylor.

It makes sense that major dairy companies want to get in on plant-based milk, said Gregoire. The dairy business is large — a “cash cow,” if you will — but not really growing, while plant-based products are seeing a boom.

“If I’m looking for avenues of growth, I don’t want to be left behind,” he said.

Gregoire said there’s a potential for consumers to get confused with so many options, which is why it’s so important for brands to find a way to differentiate themselves, whether it’s with taste, health, or how well the drink froths for a latte.

Competition in a more crowded market is challenging, but Taylor believes it results in better products for consumers.

“It keeps you sharp, and it forces you to be really good at what you’re doing. It drives innovation,” he said.

This report by The Canadian Press was first published Sept. 15, 2024.



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