The eco-friendly car manufacturer is now looking for ‘cleaner’ way to push crypto payments.
After Elon Musk discovered that Bitcoin is consuming the highest fossil fuels out of all cryptocurrencies, Tesla now decided to stop its crypto payment with the coin. Will this be the chance for Dogecoin?
Bitcoin is ‘non-eco-friendly’
On Wednesday, May 12, Tesla CEO Elon Musk announces that they will now stop transacting crypto payments using Bitcoin. This was after researches show that Bitcoin is the least eco-friendly crypto coin in the market. Tesla is one of the most environmental-friendly car manufacturers in the world by pushing electric vehicles.
In his tweet, the billionaire said that Tesla has “suspended vehicle purchases using bitcoin,” out of concern over “rapidly increasing use of fossil fuels for bitcoin mining.” In February, Elon was the first one to announced that his car company will be accepting bitcoin as mode of payment. Not only that, he also bought $1.5 billion worth of the said cryptocurrency.
“Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel. Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment. Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy,” said on the statement.
Now, Musk explains that they can still consider using bitcoin, but under circumstances of miners using less fossil fuels in the process. As of now, there are still no reports saying that this is possible.
Bitcoin plummets after tweet
Only minutes after the Elon tweet, the value bitcoin suddenly dropped. From $53,000 range, the bitcoin price is now at $50,000.
Other companies have already implemented bitcoin payments in their system. We don’t which of them will now back out after Tesla’s reversed decision.
Dogecoin to the rescue?
Though there’s no announcement yet, a lot of DOGE holders have predicted that Tesla might be looking at dogecoin to become the next crypto payment. After all, Elon is one of the promoters of the said coin. He also mentioned in a different tweet that Tesla is thinking of putting the ‘meme’ coin as payment method, as reported via Tech Visibility.
It is also worth noting that Tesla’s statement ended its phrase by saying, “We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.”
DOGE, according to Yahoo Finance, uses 0.12 of a Kilowatt hour (KWh) per transaction. Meanwhile, Bitcoin is the least eco-friendly with its high amount of fuels used for mining with 707 KWh. Other cryptocurrencies are also Earth-friendly such as Ethereum with 62.56 KWh, Litecoin with 18.522 KWh, and most eco-friendly of them all, XRP with only 0.0079 KWh.
As of now, the Dogecoin is still getting bearish rate with average $.44 value. This failing trend started happening after the Saturday Night Live episode of Elon, last Saturday, May 8.