Elon Musk says Tesla will accept Bitcoin payments again once miners use 50% clean energy.
Tesla will resume accepting bitcoin payments for its cars once miners of the cryptocurrency show they are using roughly 50% clean energy, CEO Elon Musk said in a tweet on Sunday. “When there’s confirmation of reasonable (~50%) clean energy usage by miners with the positive future trend, Tesla will resume allowing Bitcoin transactions,” he said.
This is the first time Musk has detailed the conditions where the company would start accepting Bitcoin again.
Elon musk’s tesla again commented on Bitcoin
Elon Musk, the billionaire head of Tesla Inc., said Bitcoin mining is “shifting towards renewable energy,” and his company will likely resume accepting the cryptocurrency as payment for its electric cars.
Market analysts see the move as an attempt by Tesla to assuage the concerns of investors who are focused on climate change and sustainability.
“Environmental, Social and Corporate Governance (ESG) issues are now a major motivation for many investors. For example, Tesla, being a clean energy-focused company, might want to work better in the environmental area of ESG,” Julia Lee from Burman Invest told the BBC.
“But a cynic might suggest that this is just another move by Elon Musk to influence the cryptocurrency market, as he has done on so many other occasions,” she added.
“I might pump, but I don’t dump,” Musk said. “Outside of Tesla and SpaceX stock, it’s my largest holding,” Musk said.
Mr Musk has been one of the world’s most high profile proponents of cryptocurrencies, often tweeting about Bitcoin and the once-obscure digital currency Dogecoin.
His tweets in recent months helped to turn Dogecoin, which was started as a social media joke, into the world’s fourth-biggest cryptocurrency.
Elon musk has a big goal around crypto.
As a matter of fact, Musk also clarified that Tesla would most likely restart accepting bitcoin as payment once it conducts due diligence on the amount of renewable energy used to mine the digital currency.
“Most likely, the answer is that Tesla would resume accepting bitcoin,” Musk said.
“I wanted a little bit more due diligence to confirm that the percentage of renewable energy usage is most likely at or above 50% and that there is a trend towards increasing that number, and if so, Tesla would resume accepting bitcoin,” Musk said.
“If the price of bitcoin goes down I lose money. I might pump but I don’t dump,” Musk said. “I definitely do not believe in getting the price high and selling or anything like that. I would like to see bitcoin succeed.”
Musk also made it clear he owns “far more” Bitcoin than Dogecoin or Ether.
Elon Musk also added, “I am not selling any bitcoin, nor SpaceX or Tesla.”
The Bottom Line
Bitcoin rose more than 8% to about $32,270 as of 12.00 a.m in New Delhi on Thursday. Other cryptos advanced, too, including Ether and Dogecoin, were also in the green.
The Bitcoin discussion focused on how the mainstream perceives Bitcoin.
Jack Dorsey, chief executive officer of Twitter Inc. and Square Inc., and Cathie Wood, head of Ark Investment Management, also spoke about the digital currency’s carbon footprint. Dorsey said Bitcoin encourages innovation in the energy sector, citing a company that converts flared natural gas into electricity to power mining rigs.
“I do believe that Bitcoin will be much more environmentally friendly” than gold mining or the existing financial sector, said Wood, adding, “In many ways it already is.”