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Fundstrat Global Advisors’ managing partner Tom Lee believes that Tesla’s abrupt suspension of Bitcoin payments over environmental concerns could be a blessing in disguise for the flagship cryptocurrency.
In an interview with Insider, the research firm executive argues that the development could make the leading digital asset friendlier to the environment as the industry seeks solutions to Bitcoin’s shortcomings highlighted by Tesla.
“I don’t think it’s going to get people negative on Bitcoin, but it is going to get people to focus on the problems that are being created by digital assets. It is probably better to view it as a call to action for the Bitcoin industry to focus on renewables or more efficient ways to provide proof of work.”
In last week’s announcement, Tesla expressed concerns over the surging use of fossil fuels for Bitcoin mining and transaction. The electric carmaker promised also says that it will resume accepting Bitcoin payments once the issue is resolved.
“Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy.”
Despite Bitcoin losing about 20% of its value since Tesla halted its use as a means of payment, Lee has upgraded the flagship cryptocurrency’s price target by 25%. From his initial forecast of $100,000, the Fundstrat managing partner and head of research now expects Bitcoin to hit $125,000 by the close of 2021.