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Tesla to go back to bitcoin when miners start using more clean energy

Tesla to go back to bitcoin when miners start using more clean energy
Tesla to go back to bitcoin when miners start using more clean energy
  • In May 2021, Tesla had disclosed that it would no longer be accepting bitcoins against purchase of its cars.
  • Now, the company states that it will once again allow Bitcoin transactions once miners use a reasonable amount (50%) of clean energy to mine the cryptocurrency.

Elon Musk, the Chief Executive Officer of American electric vehicle and clean energy company, Tesla Inc., has reportedly tweeted that the carmaker will once again be allowing bitcoin transactions. However, this will only happen once miners begin utilizing more renewable energy to mine the cryptocurrency.

Back in February 2021, Tesla unveiled that it had purchased $1.5 billion worth’ of bitcoin and would accept it as a form of payment upon the purchase of cars. However, the company had recently went back on that decision citing the massive carbon footprint of mining bitcoins.

As per a tweet by Musk, when there is confirmation of reasonable usage (50%) of clean energy by miners with positive trends in future, the company will be resuming to enable Bitcoin transactions.

For the record, Tesla CEO had announced in May 2021 that the company would no longer be accepting bitcoin for car purchases. The decision was taken in view of long-brewing environmental concerns regarding a swift reversal in the position of the carmaker on the cryptocurrency. Bitcoin recorded a fall of over 10%, following this tweet.

The billionaire further stated his belief that the cryptocurrency has a promising future. However, it cannot be at a great value to the environment.

According to Magda Wierzycka, the CEO of Sygnia, what has been seen with Bitcoin is the manipulation of price by one very influential and powerful individual.

In return, Elon Musk argued that this is inaccurate, adding that Tesla merely sold nearly 10% of holdings for confirming the possibility of easy liquidation of BTC without moving the market. He stated that when there is confirmation of reasonable usage of clean energy by miners, Tesla will be resuming to allow Bitcoin transactions.

On Sunday, 13th June 2021, Bitcoin rose 5.1% to $37,360.63, adding a value of $1,817.87 to its last close, following the tweet by Elon Musk.

Source credit: https://indianexpress.com/article/business/world-market/musk-says-tesla-will-accept-bitcoins-when-miners-use-more-clean-energy-7357780/

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.