Elon Musk, the founder and CEO of Tesla Inc. (NASDAQ: TSLA), has announced that the company will no longer accept Bitcoin as a means of payment for car purchases. In a tweet, Musk cited concerns about the “rapidly increasing use of fossil fuels for bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”
“Cryptocurrency is a good idea on many levels and we believe it has a bright future, but it cannot result in high environmental costs,” wrote Musk.
I look forward to meeting you at iFX EXPO Dubai in May 2021 – make it happen!
However, Musk made it clear that “Tesla will not sell Bitcoin” and that the company “[intends] use it for transactions once mining moves to more sustainable energy. He also said that Tesla would study “other cryptocurrencies” that use less than 1% of Bitcoin’s energy consumption.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
– Elon Musk (@elonmusk) May 12, 2021
Crypto Twitter isn’t exactly happy with Tesla’s decision
Although Musk said Tesla would not sell any of its Bitcoin holdings, BTC’s price reacted to the tweet almost immediately, falling nearly 20 percent. Does musk get cold on crypto? each from about $ 58,000 to $ 49,000. At the time of going to press, the price had rebounded to $ 51,220.
Still, the news seems to have rocked the crypto markets across the board. In the past 24 hours, XRP, Ether (ETH), Binance Coin (BNB) and Internet Computer (ICP) have fallen more than five percent. Dogecoin (DOGE) and Bitcoin CASH (BCH) have fallen by more than ten percent each.
While Bitcoin critics see the news as a step in the right direction (Musk’s tweet was “liked” nearly 350,000 times), some members of the crypto community are not exactly happy with Tesla’s decision.
In response to Musk’s announcement, Anthony Pompliano, founder of Pomp Investments, wrote, “Elon… you know 75% of miners use renewable energy, don’t you? This energy story has been exposed over and over again. “The tweet, which was liked nearly 42,000 times, appears to refer to a statement by Ark Investments that 76 percent of Bitcoin miners use renewable energy, a number that some believe is controversial.
Author Preston Pysh replied, “Oh, oh. Has anyone been yelled at by the government paying you massive subsidies so you can stay in business every quarter? “
The Turkish lira is trading near record lows on unorthodox monetary policy. To the article >>
The Bitcoin Rewards Company responded by parodying Musk’s original tweet, writing, “Lolli has officially stopped buying Teslas. We are deeply concerned about the CEO’s inability to understand that Bitcoin is largely mined using renewable energy. “
https://t.co/rGJV9bZETO & Tesla pic.twitter.com/qEtAcNwgEA
– Lolli @ (@trylolli) May 12, 2021
Does musk get cold on crypto?
Makoto Sakuma, a researcher at the NLI Research Institute, said Reuters Tesla’s decision to stop accepting Bitcoin could signal a change in Musk’s stance on crypto.
“The problem (of the enormous energy consumption by bitcoin miners) has been known for a long time, so it is nothing new,” said Sakuma. “But along with Musk’s recent comments on Dogecoin, his recent comments seem to suggest that his passion for cryptocurrencies is waning.” Musk referred to DOGE as “Hustle” during his appearance on the comedy sketch show Saturday Night Live last weekend.
Prior to appearing on the show, Musk tweeted, “Cryptocurrency is showing great promise, but please invest with caution!”
Cryptocurrency shows promise, but please invest with caution! https://t.co/A4kplcP8Vq
– Elon Musk (@elonmusk) May 7, 2021