Not too long ago, Electric Vehicle company Tesla owned by Elon Musk pulled the brakes on Bitcoin and stopped accepting the coin as a means of payment for its electric vehicles. The CEO via tweet said that the decision was made because the process of mining Bitcoin was detrimental to the environment.
“Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at a great cost to the environment”, the billionaire tweeted last month. The price of Bitcoin dropped 10 percent after this tweet and caused quite some uproar in the cryptoverse. The Technoking, however, mentioned that Tesla will keep its Bitcoin holdings and will continue to use them as soon as mining transitions to more sustainable sources.
On the 24th of May, the Tesla boss made a tweet stating that he had made contact with North American Bitcoin miners on sustainable ways of mining the cryptocurrency. “Spoke with North American miners. They committed to publish current and planned renewable usage and to ask miners WW to do so. Potentially promising”, his tweet read. The Bitcoin Mining Council, which MicroStrategy CEO – Michael Saylor is a part of, was birthed after this. The price of Bitcoin also jumped 4 percent after this.
This is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.
When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.
On Sunday, the price of Bitcoin surged after a tweet saying that Tesla would continue to use Bitcoin as a means of payment for its electric vehicles was made by Elon Musk. “When there’s confirmation of reasonable (50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transaction”, the tweet read.
Bitcoin jumped 5.1 percent to $37,360.63 at 2:10 p.m. ET on Sunday after the tweet by Tesla’s CEO.
Bitcoin continues to make wave amidst the price volatility it recently witnessed. Central American country El Salvador became the first country in the world to adopt Bitcoin as a legal tender. On Wednesday, the president of El Salvador sent the law to the congress for a vote. The adoption therefore means that the prices of goods and services, as well as tax contributions can now be set and paid in Bitcoin.
Bitcoin still continues to face huge criticisms from people like the former U.S. President who said Bitcoin is a scam during a recent interview with Fox News.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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