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Step by Step: How Elon Musk Built His Empire

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This graphic was created by information designer Anna Vital, read her full article here.

Step by Step: How Elon Musk Built His Empire
Copyright Funders and Founders.

Step by Step: How Elon Musk Built His Empire

“The next Bill Gates will not build an operating system. The next Larry Page or Sergey Brin won’t make a search engine. Tomorrow’s champions will not win by competing ruthlessly in today’s marketplace. They will escape competition altogether, because their businesses will be unique.”

– Peter Thiel in “Zero to One”

In the book Zero to One, prominent entrepreneur and investor Peter Thiel shares his vision on what it takes to create an extraordinary company.

Specifically, Thiel believes that instead of making incremental upgrades to an existing product or service, a company must aim to do something completely new to avoid ruthless competition. While Thiel has worked with many impressive people over the years, Thiel points to Elon Musk as a particularly successful member of the Paypal Mafia that has gone “zero to one” many times.

The Résumé

At only the age of 44, just “some” of Musk’s successes include building the world’s first global online payments company (Paypal) and landing re-usable rockets on ocean platforms (SpaceX). He also co-founded SolarCity, which just closed a $338 million round for providing commercial solar and energy storage, and his electric car company Tesla now has 325,000 pre-orders for the Tesla Model 3, which is good for $14 billion in future revenues.

Meanwhile, in his spare time, Musk draws up plans for revolutionary transport systems, such as the Hyperloop and VTOL supersonic jet aircraft known as the Musk electric jet.

That’s going from zero to one at least a few separate times, with many years in his career left to come. How does Elon do it?

The Life of Elon Musk

In the infographic and article from Funders and Founders, Vital highlights key circumstances, decisions, and results in Elon Musk’s life. Here are some of the key inflection points that helped him to build his massive empire.

  • Elon was born in South Africa to an engineer father and model mother on June 28, 1971.
  • Elon read 10 hours a day as a kid, and even read the entire Encyclopedia Britannica.
  • At age 12, Elon sold his first video game that he coded for $500.
  • After being inspired by Hitchhiker’s Guide to the Galaxy, Elon decided that his new life mission would be to save humanity.
  • Leaves Stanford PhD program after two days to help found Zip2, which he started with a $28,000 loan from his father.
  • He later received proceeds of $22 million from the sale of Zip2 to Compaq, which he used to start X.com.
  • X.com merges with another online bank (Confinity) to form Paypal.
  • Elon gets ousted as CEO from Paypal while on his honeymoon, yet still invests more money in the company regardless.
  • He discovers that space rockets are artificially overpriced, and starts SpaceX to build his own rockets.
  • Elon gets $250 million from the sale of Paypal to Ebay.
  • Meets Tesla founders Marc Tarpenning and Martin Eberhard, and introduces them to JB Straubel. Elon invests in Tesla.
  • After having three SpaceX rockets explode while approaching bankruptcy with Tesla, Elon takes action. He takes over as CEO of Tesla and raises an emergency fifth round of financing. Meanwhile, his fourth rocket launch with SpaceX succeeds and a $1.6B contract with NASA is signed.
  • Tesla goes public at $17 per share (it trades for ~$250/share today)
  • Elon announces reusable rockets that could make space flight 100x cheaper, and promises to also send humans to Mars by 2021-2031.
  • Elon publishes the Hyperloop design, starts building the Gigafactory, unveils the Powerwall, and eventually lands a rocket on an ocean platform.

What’s next?

Launching the Falcon Heavy rocket, starting Gigafactory production, selling the Model 3 electric car, and potentially landing on Mars are just some of the things on his future laundry list.

What Musk can actually accomplish in the future is anybody’s guess. We certainly won’t be betting against him.

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Energy

Visualizing the Power Consumption of Bitcoin Mining

Bitcoin mining requires significant amounts of energy, but what does this consumption look like when compared to countries and companies?

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Visualizing the Power Consumption of Bitcoin Mining

Cryptocurrencies have been some of the most talked-about assets in recent months, with bitcoin and ether prices reaching record highs. These gains were driven by a flurry of announcements, including increased adoption by businesses and institutions.

Lesser known, however, is just how much electricity is required to power the Bitcoin network. To put this into perspective, we’ve used data from the University of Cambridge’s Bitcoin Electricity Consumption Index (CBECI) to compare Bitcoin’s power consumption with a variety of countries and companies.

Why Does Bitcoin Mining Require So Much Power?

When people mine bitcoins, what they’re really doing is updating the ledger of Bitcoin transactions, also known as the blockchain. This requires them to solve numerical puzzles which have a 64-digit hexadecimal solution known as a hash.

Miners may be rewarded with bitcoins, but only if they arrive at the solution before others. It is for this reason that Bitcoin mining facilities—warehouses filled with computers—have been popping up around the world.

These facilities enable miners to scale up their hashrate, also known as the number of hashes produced each second. A higher hashrate requires greater amounts of electricity, and in some cases can even overload local infrastructure.

Putting Bitcoin’s Power Consumption Into Perspective

On March 18, 2021, the annual power consumption of the Bitcoin network was estimated to be 129 terawatt-hours (TWh). Here’s how this number compares to a selection of countries, companies, and more.

NamePopulation Annual Electricity Consumption (TWh)
China1,443M6,543
United States330.2M3,989
All of the world’s data centers-205
State of New York19.3M161
Bitcoin network -129 
Norway5.4M124
Bangladesh165.7M70
Google-12
Facebook-5
Walt Disney World Resort (Florida)-1

Note: A terawatt hour (TWh) is a measure of electricity that represents 1 trillion watts sustained for one hour.
Source: Cambridge Centre for Alternative Finance, Science Mag, New York ISO, Forbes, Facebook, Reedy Creek Improvement District, Worldometer

If Bitcoin were a country, it would rank 29th out of a theoretical 196, narrowly exceeding Norway’s consumption of 124 TWh. When compared to larger countries like the U.S. (3,989 TWh) and China (6,543 TWh), the cryptocurrency’s energy consumption is relatively light.

For further comparison, the Bitcoin network consumes 1,708% more electricity than Google, but 39% less than all of the world’s data centers—together, these represent over 2 trillion gigabytes of storage.

Where Does This Energy Come From?

In a 2020 report by the University of Cambridge, researchers found that 76% of cryptominers rely on some degree of renewable energy to power their operations. There’s still room for improvement, though, as renewables account for just 39% of cryptomining’s total energy consumption.

Here’s how the share of cryptominers that use each energy type vary across four global regions.

Energy SourceAsia-PacificEuropeLatin America
and the Caribbean
North America
Hydroelectric65%60%67%61%
Natural gas38%33%17%44%
Coal65%2%0%28%
Wind23%7%0%22%
Oil12%7%33%22%
Nuclear12%7%0%22%
Solar12%13%17%17%
Geothermal8%0%0%6%

Source: University of Cambridge
Editor’s note: Numbers in each column are not meant to add to 100%

Hydroelectric energy is the most common source globally, and it gets used by at least 60% of cryptominers across all four regions. Other types of clean energy such as wind and solar appear to be less popular.

Coal energy plays a significant role in the Asia-Pacific region, and was the only source to match hydroelectricity in terms of usage. This can be largely attributed to China, which is currently the world’s largest consumer of coal.

Researchers from the University of Cambridge noted that they weren’t surprised by these findings, as the Chinese government’s strategy to ensure energy self-sufficiency has led to an oversupply of both hydroelectric and coal power plants.

Towards a Greener Crypto Future

As cryptocurrencies move further into the mainstream, it’s likely that governments and other regulators will turn their attention to the industry’s carbon footprint. This isn’t necessarily a bad thing, however.

Mike Colyer, CEO of Foundry, a blockchain financing provider, believes that cryptomining can support the global transition to renewable energy. More specifically, he believes that clustering cryptomining facilities near renewable energy projects can mitigate a common issue: an oversupply of electricity.

“It allows for a faster payback on solar projects or wind projects… because they would [otherwise] produce too much energy for the grid in that area”
– Mike Colyer, CEO, Foundry

This type of thinking appears to be taking hold in China as well. In April 2020, Ya’an, a city located in China’s Sichuan province, issued a public guidance encouraging blockchain firms to take advantage of its excess hydroelectricity.

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Energy

How Much Solar Energy is Consumed Per Capita? (1965-2019)

This visualization highlights the growth in solar energy consumption per capita over 54 years. Which countries are leading the way?

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How Much Solar Energy is Consumed Per Capita?

The long history of solar energy use dates as far back as 4,000 B.C.—when ancient civilizations would use solar architecture to design dwellings that would use more of the sun’s warmth in the winter, while reducing excess heat in the summer.

But despite its long history, we’ve only recently started to rely on solar energy as a renewable power source. This Our World in Data visualization pulls data from BP’s Statistical Review of World Energy to highlight how solar energy consumption per capita has grown in countries around the world over 54 years.

Solar Success: The Top Consumers Per Capita

Solar energy consumption is measured in kilowatt hours (kWh)—and as of the latest estimates, Australia leads the world in terms of highest solar energy consumption per capita at 1,764 kWh in 2019. A combination of factors help achieve this:

  • Optimal weather conditions
  • High gross domestic product (GDP) per capita
  • Tariffs incentivizing the shift to solar

In fact, government subsidies such as financial assistance with installation and feed-in tariffs help bring down the costs of residential solar systems to a mere AUD$1 (US$0.70) per watt.

RankCountrySolar consumption per capita
(kWh, 2019)
Solar’s share of total
(per capita consumption)
#1🇦🇺 Australia1,7642.50%
#2🇯🇵 Japan1,4693.59%
#3🇩🇪 Germany1,4093.22%
#4🇦🇪 UAE1,0560.77%
#5🇮🇹 Italy9953.40%
#6🇬🇷 Greece9363.08%
#7🇧🇪 Belgium8471.30%
#8🇨🇱 Chile8233.39%
#9🇺🇸 U.S.8151.02%
#10🇪🇸 Spain7972.34%

Source: Our World in Data, BP Statistical Review of World Energy 2020
Note that some conversions have been made for primary energy consumption values from Gigajoules (GJ) to kWh.

Coming in second place, Japan has the highest share of solar (3.59%) compared to its total primary energy consumption per capita. After the Fukushima nuclear disaster in 2011, the nation made plans to double its renewable energy use by 2030.

Japan has achieved its present high rates of solar energy use through creative means, from repurposing abandoned golf courses to building floating “solar islands”.

Solar Laggards: The Bottom Consumers Per Capita

On the flip side, several countries that lag behind on solar use are heavily reliant on fossil fuels. These include several members of OPEC—Iraq, Iran, and Venezuela—and former member state Indonesia.

This reliance may also explain why, despite being located in regions that receive the most annual “sunshine hours” in the world, this significant solar potential is yet unrealized.

RankCountrySolar consumption
per capita (kWh, 2019)
Primary energy consumption
per capita (kWh, 2019)
#1🇮🇸 Iceland0No data available
#2🇱🇻 Latvia0No data available
#3🇮🇩 Indonesia<19,140
#4🇺🇿 Uzbekistan<115,029
#5🇭🇰 Hong Kong<146,365
#6🇻🇪 Venezuela121,696
#7🇴🇲 Oman284,535
#8🇹🇲 Turkmenistan367,672
#9🇮🇶 Iraq415,723
#10🇮🇷 Iran541,364

Source: Our World in Data, BP Statistical Review of World Energy 2020
Note that some conversions have been made for primary energy consumption values from Gigajoules (GJ) to kWh.

Interestingly, Iceland is on this list for a different reason. Although the country still relies on renewable energy, it gets this from different sources than solar—a significant share comes from hydropower as well as geothermal power.

The Future of Solar

One thing the visualization above makes clear is that solar’s impact on the global energy mix has only just begun. As the costs associated with producing solar power continue to fall, we’re on a steady track to transform solar energy into a more significant means of generating power.

All in all, with the world’s projected energy mix from total renewables set to increase over 300% by 2040, solar energy is on a rising trend upwards.

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