The CEO of Tesla Elon Musk Twitted on Wednesday on Twitter that “Tesla stop taking Bitcoin for vehicle purchase,citing environment problem”. First minute after Musk announces, the price of Bitcoin dropped about 5%.
Elon Musk also said that Tesla will no longer sell any more of the $1.5 billion stash of Bitcoin in February of this Year. Tesla would resume accepting Bitcoin once the process of mining Bitcoin transaction to more substantial energy. Tesla company is also looking at other cryptocurrency that uses <1% of Bitcoin/transaction.
Musk stated that “cryptocurrency is a good idea on many levels and we believe it has a promising future but thus cannot come at great cost of the environment”. some corporate buyers and Mainstream investors including Tesla, Sqare,Metromile and Naxon have flocked to Bitcoin, viewing the currency as a potential inflation hedge while banks (central) prints money to relieve coronavirus economies. but, some investors like SOFTBANK founder Masayoshi son still aren’t buying into cryptocurrency craze.
Masayoshi son said at a recent earning conference that ” Honestly specking, i don’t know what is the true value or is it in a bubbles if there is a lot of discussion over if it is a good thing or bad thing”. While Tesla said it would not accept Bitcoin for the purchase of vehicles on Wednesday,Elon Musk specified that Tesla plan to hold it Bitcoin than sell the Bitcoin it already has and it will be viewing other crypto’s with less energies for transactions.
Elon Musk had been Twitting about Bitcoin and Dogecoin, joking about this two with millions of followers he have on Twitter for the past years. On “Saturday Night Life” this past weekend , the Tesla Chief made his hosting debut and devoted part of his opening monologue and one sketch to talking up dogecoin.
According to an article published in April by The Verge , Bitcoin has a yearly carbon footprint on with Hong Kong and for some perspective , Hong Kong had a population of just over 7.5 million people as at 2019. The highest portion of Bitcoin footprint comes from China because most of mined Bitcoin comes China which relies heavily on coal and other non-sustainable energy sources.
According to Cambridge University Researchers, mining Bitcoin consume currently 100 Terawatt Hours yearly which equate 0.55% of global electricity production. Cryptocurrency consumes more energy yearly than countries that consume most such as Netherlands,Malaysia, Sweden and Argentina. Furthermore, Bill Gate eloquently summed it up in a recent interview, “Bitcoin uses more electricity per transaction than any other method known to mankind”.
Though, Elon Musk isn’t ready to put all into cryptocurrency. He said Tesla will view other cryptocurrency with 1% or <1% transaction. He assumed Dogecoin could be one of that cryptocurrency that uses less than 1% because it uses 0.12 of a KWh per transaction whereas Bitcoin uses 707KWh per transaction according to the news gotten from TRG Datacenters.
Its safe to say whichever cryptos Elon Musk end up accepting at Tesla , it value will stand to benefit the news.Following Musk announcement on Thursday , Mark Cuban the owner of Dallas Mavericks said they (team) will continue to accept Bitcoin and other Cryptocurrency because ” it will help the environment by replacing Gold as a store of value”.