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Elon Musk Makes a U-Turn Tesla Stops Accepting Bitcoin as Payments - TCR

Bitcoin

www.thecoinrepublic.com 13 May 2021 10:34, UTC
  
Reading time: ~2 m

  • The decision will pacify Bitcoin Critics
  • Eventually, this lead to more environmentally friendly mining methods

Tesla CEO Elon Musk has decreed that the electric car manufacturer is suspending Bitcoin Payments. Bitcoin(BTC) highly energy-intensive process has been cited as a reason for this move. In a tweet, Elon Musk informed that Tesla is stopping all Bitcoin payments. 

Elon Musk becomes an environmentalist

Elon Musk, the avowed champion of cryptocurrency, has dropped another bombshell after his famous appearance on SNL show where he labelled Dogecoin (DOGE) as a hustle. Coindesk reported that Elon Musk, in a tweet, informed that Tesla would not accept Bitcoin as payments for its electric car. 

In February, Tesla had first announced that it would be accepting Bitcoin(BTC) as payments. The announcement went side by side with a $1.5 billion investment in bitcoin as a treasury asset.

Meanwhile, Musk continues to push for the meme currency DOGE, and it has today a market cap of $58 billion. However, of late, the Tesla CEO is advising caution while investing in Crypto coins. For the first time, the high-profile billionaire is putting the spotlight on the environmental cost of cryptocurrency.

Cryptocurrency energy-guzzling process

Energy usage trend over past few months is insane https://t.co/E6o9s87trw pic.twitter.com/bmv9wotwKe

— Elon Musk (@elonmusk) May 13, 2021

Cryptocurrency has been facing flak due to the huge amounts of electricity required to mine coins. Low energy costs and cheap labour has pushed big Bitcoin mining houses to shift operation to China.

In the US, long-dormant coal-based powerhouses are also coming back to life to fulfil increasing energy demands due to Bitcoin (BTC) mining. Coindesk quoting Elon Musk, who said that cryptocurrency could not come at a great price to the environment. 

The latest move by Tesla could be labelled as a victory for the critics of Bitcoin. However, it will eventually wean away miners from fossil fuels.


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