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Tesla announces the stop to payments with Bitcoins

Tesla announces the stop to payments with Bitcoins

Tesla announces one immediate stop to Bitcoin payments for their own electric cars. The news comes via the CEO’s Twitter account Elon Muskwhich cites concerns about fossil fuel pollution from cryptocurrency mining.

Tesla: stop on cryptocurrency payments

After only three months of launching the Bitcoin payment option, Tesla turns back. He does it with a tweet from the CEO Elon Musk on Wednesday 12 May. The text of the announcement reads: “Tesla has suspended the purchase of vehicles with Bitcoins. We are concerned about the rapid growth in the use of fossil fuels for Bitcoin mining and transactions, especially the use of coal, which has the worst emissions of any fuel. Cryptocurrencies are a good idea in many ways and we believe they have a promising future, but that cannot come at the cost of the environment. Tesla will not sell any Bitcoins and we have intentions to use them in transactions as soon as mining switches to a more sustainable power source. We are also evaluating other cryptocurrencies that use less than 1% of Bitcoin’s energy per transaction ratio ”.

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Tesla & Bitcoin pic.twitter.com/YSswJmVZhP

– Elon Musk (@elonmusk) May 12, 2021

The possible financial impact of the move

After announcing this stance, citing environmental protection, Musk immediately made it clear that the company he has no plans to sell the $ 1.2 billion worth of Bitcoin bought by Tesla this year (after a $ 1.5 billion purchase, the company sold $ 300 million worth of cryptocurrency for budgetary reasons).

Despite this, the Bitcoin price is dropping after the announcement Tesla’s stop on payments. The financial impact of this move will be seen in the final days of trading before the weekly close on Wall Street.

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The energy impact of cryptocurrencies, on the other hand, is well known. Some estimates place the Bitcoin consumption above that of a nation like Argentina. Bill Gates explained that “Bitcoins use more electricity per transaction than any method known to man and are not good news for the environment” in an interview with The New York Times. However, Musk had been a supporter of cryptocurrency, from Bitcoin to the more recent Dogecoin.

The transition of mining to the green economy it will be complicated and no one can predict the impact in the long run: the contrast between environmentalism and cryptocurrencies could lead to unexpected consequences. In the meantime, keep an eye on the Bitcoin value situation.

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