Tesla CEO Elon Musk has said his company is suspending plans to accept Bitcoin as payment for electric vehicles.
May 13, 2021, | AtoZ Markets – Tesla has “suspended vehicle purchases using bitcoin,” out of concern over “rapidly increasing use of fossil fuels for bitcoin mining,” according to a tweet from CEO Elon Musk on Wednesday.
“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,” the statement said.
The price of bitcoin dropped in the first minutes after Musk’s announcement to $45,700 - the lowest level since February. At the time of writing, however, BTC price has recovered to around $50,000.
The electric car maker noted that the cryptocurrency has a promising future, but it shouldn't come at the expense of the environment. The company has pledged not to sell the bitcoins it owns and to resume selling for digital gold when mining becomes sustainable.
Tesla is also considering other cryptocurrencies that spend less than one percent of the energy of the bitcoin network used to process transactions.
Musk faces sharp rebukes over Tesla’s suspension of bitcoin payment
The crypto community has reacted violently to Tesla's decision. Some bitcoin users noted that the company paid attention to the energy consumption of the BTC network two months after the start of accepting payments in cryptocurrency.
Some have found a possible reason for the sudden criticism of digital gold mining in Tesla's plans to obtain funding in the form of loans that the administration of President Joe Biden gives to renewable energy companies.
Reuters, citing its own sources reported that the automaker is one of at least eight companies that their applications are pending in the Agency for Environmental Protection. Tesla's proposal is likely related to the use of biogas in landfills.
In comments under the tweet of the head of the company, Elon Musk , Morgan Creek Digital co-founder Anthony Pompliano recalled that according to research, 75% of miners use renewable energy.
Economist Saifedin Ammus, author of A Brief History of Money, or Everything You Need to Know About Bitcoin, told Musk:
“If you also don't switch to 'more sustainable energy' manufacturing rockets and batteries, you will look like a big ignorant hypocrite. The world needs healthy money much more than your rockets and government-subsidized electric cars.”
Recall, ECB board member Fabio Panetta said that mining cryptocurrencies such as bitcoin poses a threat to global sustainable development in terms of ecology.
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