Elon Musk says Tesla will stop accepting bitcoin for car purchases.
Above all, Tesla CEO Elon Musk said Wednesday on Twitter that Tesla has “suspended vehicle purchases using bitcoin” out of concern over “rapidly increasing use of fossil fuels for bitcoin mining.”
The price of bitcoin dropped about 5% in the first minutes after Musk’s announcement.
Here was Musk’s full announcement:
As a matter of fact, In an SEC filing in February. Altogether, Tesla revealed that it bought $1.5 billion worth of bitcoin. By and large, it may invest in more bitcoin or other cryptocurrencies in the future.
Elon Musk: Tesla will not accept your bitcoin
Above all, “Tesla has suspended vehicle purchases using Bitcoin. We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions. Especially coal, which has the worst emissions of any fuel. Above all, Cryptocurrency is a good idea on many levels, and we believe it has a promising future, but this cannot come at a great cost to the environment.
In a word, Tesla will not be selling any Bitcoin. We intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.”
Firstly, Mainstream investors and some corporate buyers, including Tesla, Square, Metromile, and Nexon, have flocked to bitcoin, viewing the digital currency as a potential inflation hedge. At the same time, central banks print money to relieve coronavirus-distressed economies.
Secondly, “There’s a lot of discussion over if it’s a good thing or a bad thing. What’s the true value, or is it in a bubble. I don’t know,” Son said at a recent earnings conference.
The Bottom Line
Musk has been a very public fan of bitcoin and dogecoin, tweeting and joking about these with his millions of Twitter followers over the past year.
Musk has also hyped another cryptocurrency, Dogecoin, which Tesla has not invested in. Musk has called Dogecoin, which was invented as a joke to satirize bitcoin, his favorite cryptocurrency, and “the people’s crypto.” The cryptocurrency’s worth plunged after Musk called it a “hustle” on Saturday Night Live. In conclusion, Bitcoin’s value has similarly plunged about 4 percent after today’s Musk tweet, to $52,593.46 at 6:21 PM ET from $54,829.14 at 6:06 PM, according to Coindesk.