Tesla has suspended the acceptance of bitcoins for vehicle purchases, CEO Elon Musk announced. The company cited concerns “about the increasing use of fossil fuels for mining and bitcoin transactions, especially coal, which has the worst emissions of all fuels.”
For now, bitcoins will not be accepted
Elon Musk, CEO of Tesla Announced on Twitter on Wednesday (12) that his electric car company has suspended the acceptance of bitcoin for the purchase of vehicles. The company makes it clear that it considers cryptocurrency to be “a good idea on many levels and we believe that it has a promising future, but that it cannot come at a great cost to the environment.” However, Tesla makes it clear that it will not. more bitcoin sales and we believe in a more sustainable future for mining, but we do not rule out the acceptance of altcoins. “Tesla will not sell bitcoins and we intend to use it for transactions once mining moves to more sustainable energy. We are also looking for other cryptocurrencies that use less than 1% of Bitcoin’s energy/transaction. “
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
Tesla began accepting bitcoin in March after the company disclosed its bitcoin holdings in a lawsuit with the U.S. Securities and Exchange Commission (SEC) earlier this year. The company had invested $ 1.5 billion in BTC. In its first-quarter filing, Tesla revealed that its bitcoin holdings grew to $ 2.5 billion after the company “sold 10% of its holdings essentially to demonstrate bitcoin liquidity as an alternative to keeping money in the market. “. balance, “Musk explained. Meanwhile, Musk took a poll on Twitter on Monday asking his followers if Tesla should accept dogecoin. 78.2% said yes.
Does Tesla give in to pressure?
Tesla, known for profiting more from carbon credits than selling electric cars, was widely criticized for its inclination to accept cryptocurrencies. All of a sudden, the environmentally conscious company was “carrying bitcoin pollution,” according to traditional media. Even in February of this year, Ark Invest CEO Cathie Wood shared a thread on Twitter explaining how, contrary to intuition, the impact of bitcoin mining is positive for the environment. She said at the time: “I think Elon Musk understands this important dynamic. For God’s sake, one of his top priorities is saving the planet. ” In the same Twitter conversation, when another user recalled that he was a co-founder of PayPal and that that experience would be relevant to his understanding of cryptocurrencies, Elon Musk commented: “I know a thing or two about payments.” Still, the suspension of the acceptance of bitcoins has come. As a result, the cryptocurrency fell around 11% according to Coingolive data. Some prominent Bitcoin supporters, such as Michael Saylor and Anthony Pompliano, responded to the ad by recalling how 75% of mining already uses renewable energy and how additional transactions on the network do. it does not affect the amount of energy used.