Elon Musk announced that Tesla will no longer be accepting cryptocurrency for customer purchases due to some environmental concerns.
The Chief Executive Officer of Tesla, Elon Musk, tweeted last Sunday that the company that makes electric cars will only resume its bitcoin transactions when its miners who have verified transactions start utilizing renewable energy.
According to him, when there is already a confirmation of a reasonable (50%) clean energy utilization by bitcoin miners with a positive trend in the future, only then will Tesla will resume accepting cryptocurrency transactions.
Bitcoin notably saw a rise in its value by 5.1% to its $37,360.53 at 2:10 pm ET last Sunday after Musk’s tweet. Therefore, the value was added up to $1,817.17 to its previous close.
The CEO also cited that Tesla was able to sell about 10% of the holdings to confirm that bitcoin can be easily liquidated without moving the market.
He previously announced in May that Tesla will not be accepting bitcoin payments any longer for the car purchases, as he cites various environmental concerns for a rapid reversal in the position of the company on the aspect of cryptocurrency. Last February, Tesla announced that it had bought a total of $1.5bn bitcoin and it would be accepting it as a form of payment for its cars. However, the production of the cryptocurrency is against the mission of the company which leans towards a future with zero emissions.
As a result of Musk’s tweet in May, Bitcoin fell over 10%.
Elon Musk stated that he believes that while cryptocurrency has an indeed promising future, the environment should not be risked for it.
The energy that is used in order to produce bitcoin is equal to the amount of the yearly carbon footprint of Argentina alone, as reported by the Cambridge Bitcoin Electricity Consumption Index – a tool that is made by researchers at Cambridge University, which is used to measure the energy use of the currency.
Bitcoin mining is a process where a bitcoin is given to a computer that is able to solve a complicated series of algorithms, a process that is deeply energy-sensitive. Due to the large number of Bitcoins that can be mined, the computers, therefore, have to solve various problems with varying degrees of difficulty in order to obtain bitcoin. As such, the special equipment, as well as the intense power use for processing, utilizes a lot of electricity that is equal to that of an entire country.
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The environment is far more important than the triumphs in the crypto space. As such, it is a wise move by Tesla to have miners look for a more renewable energy source for bitcoin mining. Get in with the latest updates on bitcoin and cryptocurrency with your Motorola Droid RAZR HD 16GB XT926 or your New Apple iPad.