29 May 2021

Elon Musk Suspended Bitcoin as Payment for Tesla

,Tesla took U-turn and suspended the decision of vehicle purchase with the use of bitcoin and its CEO Elon Musk said that it is due to climate change reasons.

After the announcement of bitcoin acceptance for Tesla, bitcoin fell more than 10%, and this affected dipping the Tesla shares too. Also, this announcement in March met with some investors and environmentalists. In February, the carmaker mentioned that it had bought $1.5bn of the biggest digital currency all over the world.

However, on Thursday, it took a huge U-turn to the prior comments mentioning that they are concerned about the swift increase of using fossil fuels, particularly for bitcoin mining and transaction, especially for coal as it has the worst emissions.

Elon Musk and Bitcoin

Bitcoin is made when high potency computers revive against other machines for solving difficult mathematical puzzles; that is an energy-intensive process that relies for now on electricity that is made with fossil fuels, especially coal.

The CEO further mentioned that cryptocurrency is surely a good idea, but it is going to cost a lot to the environment. Also, the carmaker is not going to sell any of its Bitcoin and has an intention to use it for transactions as the mining process gets to more sustainable energy.

All the market analysts see this move by electric car making company Tesla to relieve the concerning investors focusing on the issue of climate change and sustainability.

Crypto Support:

Some of the proponents of bitcoin noted that the financial system existing now with its several employees and devices in air-conditioned offices make use of a large amount of energy too.

Following this, Elon Must restated his strong belief in crypto. He mentioned on his Wednesday tweet that they are looking for other digital currencies that make use of 1% of bitcoin’s energy per transaction.

A day before this, the CEO of Tesla had a poll on his Twitter account about whether the company should use Dogecoin or not. It is a currency that he helped turned from jokes to a valuable asset.

After that, on Sunday, he announced that SpaceX. His commercial rocket company will be accepting Dogecoin as a payment method. This is for launching a lunar mission upcoming year. This was done just a few hours after he sent the crypto spiraling downward. He is calling it a hustle during a guest host on the comedy sketch TV show “Saturday Night Live.”


The Dominance Of China:

There is a dominance of Chinese bitcoin miners. That is pairing with a lack of motivation to swap cheap fossil fuel for more costly renewable. This means that a few quick fixes can help the crypto emission problem.

The Chinese miners account for almost 70pc of the production of bitcoin. And data from the Cambridge University’s center for alternative finance shows. They are most likely to use renewable energy. That is mostly hydropower during the months of rainy summer but fossil fuels for the rest of the year. And that includes especially coal.

Some officials in Beijing have data centers check that involve cryptocurrency mining. This is for a better understanding of their effect on energy consumption.


Final Words:

So, as there are quite big emissions from bitcoin mining. And Tesla demands a quite high price for their electric cars (that is an obvious thing). So, it can definitely cause a lot of issues to the environment. Keep following Creative Sprout Media’s blog for the latest updates.

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