Bitcoin plummets after Elon Musk announcement: Tesla will no longer accept cryptocurrency as a form of payment

Bitcoin plummets after Elon Musk announcement: Tesla will no longer accept cryptocurrency as a form of payment

Bitcoin plummets after Elon Musk announcement: Tesla will no longer accept cryptocurrency as a form of payment

Elon Musk announced last night on Twitter his company's decision not to accept bitcoins due to the use of fossil fuels for mining and transactions. The cryptocurrency fell below $ 49,500.

Mark Zuckerberg reveals that one of his goats is called Bitcoin and some cryptocurrency followers see it as an endorsement.

Bitcoin


Billionaire Elon Musk has officially announced that his vehicle company Tesla will no longer accept Bitcoin as a means of payment . The controversial businessman has launched a statement on his Twitter account and in it he explains that the decision was made due to the use of fossil fuels for mining and transactions:

elon musk tweet
elon musk tweet


“ Tesla has suspended vehicle purchases with Bitcoin. We are concerned about the increasing use of fossil fuels for bitcoin mining and transactions , especially coal, which has the worst emissions of any fuel, ”said the note shared by Musk on Twitter.

The Tesla CEO went on to say that " cryptocurrencies are a good idea on many levels and we believe they have a promising future , but this cannot come at a great cost to the environment."

It explained that "Tesla will not sell Bitcoin" and that they intend to "use it for transactions as mining transitions to more sustainable energy." We remember that in February we knew the news that the electric car company had invested 1.5 billion dollars in the cryptocurrency, news that shot up its value by around 13%, reaching a then new all-time high of 44,595.1 USD.

Finally, the businessman closed the statement saying that Tesla is also looking for "other cryptocurrencies that use less than 1% of the energy and transactions of Bitcoin ."

Musk's tweet had a tremendous reaction on the social network itself and outside of it: Bitcoin immediately experienced a crash and fell 9%, below $49,500 , the lowest value of the cryptocurrency in almost a month.

It is also worth remembering that these statements come less than two months after Tesla announced that it would accept Bitcoin , which then sparked criticism from some environmental defenders and investors, although it also gave the cryptocurrency a good boost - along the lines of almost all of Musk's stock in regards to her.

Last month, the company announced that its earnings in the first three months of the year amounted to $ 438 million, 16 more than the previous year, and part of that growth was thanks to it having sold in Bitcoin.

Bitcoin had had a relatively stable last week . On May 6, BTC reached $ 58,000, and the days before and before had remained in the rough range of $55,000-57,000. Its latest record was in mid-April when it topped $ 64,000 , fueled by Coinbase's debut on Wall Street. At the time of this writing the cryptocurrency has 'recovered' a bit and is trading at just over $ 50,000.

Some analysts agree that this could just be another 'ruse' by Musk: Burman Invest's Julia Lee told the BBC that "someone cynical might suggest that this is just another move by Elon Musk to influence the cryptocurrency market , such as He has done it on as many occasions. "

However, the environment is a problem - and a very real one - in the ecosystem of cryptocurrencies in general and Bitcoin in particular.

The Cambridge Bitcoin Electricity Consumption Index (CBECI) states that mining the digital currency consumes around 120.

37 terawatt hours (TWh) per year , which is a higher expense than the Netherlands or the United Arab Emirates -110.68 TWh and 119.45 TWh per year, respectively- and almost the same as Argentina -125.03 TWh per year- or Norway -124.13 TWh per year-.


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