Elon Musk has announced that Tesla will stop taking Bitcoin as payment for its cars, citing environmental reasons.
Tesla bought and sold a lot of Bitcoin recently
Tesla only first announced that it would accept Bitcoin back in March, despite the fact that it is estimated to use as much electricity as the Netherlands per year. And it’s a well known fact that its energy inefficiency isn’t particularly aligned with sustainability focused company’s such as Tesla.
“You can now buy a Tesla with Bitcoin,” Musk tweeted in March.
And just two weeks ago Tesla sold roughly 10 per cent of its Bitcoin holdings, to the tune of roughly $US101 million.
And now it is back flipping
And now it seems like Musk and the company have done quite the backflip on the crypto. Musk has said that until Bitcoin mining becomes more sustainable, Tesla will not use it for transactions or sell it.
Musk took to Twitter to make the new announcement on Thursday.
“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 worst[sic] emissions of any fuel,” Musk said.
“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.”
“We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.”
Tesla’s impact on the market
Since the announcement earlier this morning the price of Bitcoin has dropped dramatically. However, this is not the first time that Musk has directly influenced the price of cryptocurrency.
Musk has been advocating cryptocurrency, particularly Dogecoin, for months.
In fact, just two days ago Musk ran a poll on Twitter asking whether Tesla should accept Doge as payment. And earlier this week he announced that SpaceX was going to literally take Dogecoin to the moon.
On January 1, 2021, Dogecoin was sitting at $US0.05 and at the time of writing it is valued at $US0.045. The price rose dramatically again last week in anticipation of Musk’s appearance on Saturday Night Live. However, it surprised punters by actually dropping during the airing of the show.
This story is updating…