Elon Musk: Tesla won't be accepting bitcoin payments amidst environmental concerns
Due to environmental concerns, Elon Musk says that his company, Tesla, will not be accepting bitcoin as payment for car payments until further notice.
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| File photo: Tesla logo |
No Tesla products and cars for bitcoin users
Yes. Elon Musk suspended vehicle purchases using bitcoin due to the increasing use of fossil fuels for bitcoin mining. This announcement proved to be significant as bitcoin prices dropped about 5 percent just minutes after the Tesla CEO's announcement.
In February, Testa unveiled via an SEC filing that it bought USD 1.5 billion worth of bitcoin. The company also hinted that it may invest in more bitcoin or other cryptocurrencies in the future. This was also the time that Tesla announced that it would be accepting bitcoin as a means of payment for its products.
Elon Musk and Tesla have been instrumental in the recent upward spike of crypto prices in recent months including the infamous Dogecoin.
Elon Musk's statement in full:
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 the worst emissions of any fuel.
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.
Business mogul and Dallas Mavericks owner Mark Cuban also released a statement following Musk's announcement. He said that the Dallas Mavericks will continue to accept payments via Bitcoin, Ethereum, and Dogecoin. He sees that cryptocurrencies will be better for the environment in the long run.
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