Friday, August 12, 2022

Elon Musk criticized for suspending bitcoin payment option for Tesla.

The Takeaway:

Elon Musk announced that Tesla would no longer accept Bitcoin for payment of its electric cars at Tesla and received criticism from the crypto community.

Elon Musk announced that Tesla would no longer accept Bitcoin for payment of its electric cars at Tesla, which did not sit well with many Twitter followers of the CEO. Tesla said back in March that it would begin accepting Bitcoin for payment of its EVs when it also made a $1.5 billion investment into the cryptocurrency. The investment paid off for the electric carmaker, which reported a $2.5 billion boost from bitcoin at the end of March 2021 in a securities and exchange filing. 


Tesla suspends bitcoin payment option because of environmental reasons. 

Elon Musk took a u-turn on the Bitcoin promise, saying that it uses too much of the environment’s energy to mine. Bitcoin uses purpose-built computers that utilize energy to solve mathematical equations to allow Bitcoin transactions to be processed. According to CNBC, Bitcoin’s energy consumption is considered larger than the use of some individual countries. Upon the news from Musk, Bitcoin plunged about 12% to $49,624. At the time of writing, BTC is trading just above $50,000. 


Tesla would retain its bitcoin holdings. 

In his Twitter post, Elon Musk said in part, “Tesla has suspended vehicle purchases using Bitcoin. We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transaction, especially coal, which has the worst emissions of any fuel.” Tesla CEO continued in the post by saying that while Tesla believes that “cryptocurrency is a good idea” it “cannot come at great cost to the environment.” Though Tesla has ended bitcoin payment, the company would continue to retain its massive bitcoin holdings and would use for transactions as soon as mining of the currency moves to “more sustainable energy.”

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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