Updated: May 13, 2021 18:01 IST
Elon Musk, the CEO of Tesla Motors, recently made an announcement that the company has decided to cease accepting bitcoin as a form of payment for its cars. This decision stems from concerns over the environmental impact of bitcoin’s energy consumption. In a statement shared on Twitter, Musk explained that Tesla had only recently started accepting bitcoin in late March. However, he emphasized that the company will no longer sell any more of the USD 1.5 billion worth of bitcoin it had purchased earlier this year. The sale of some bitcoin in the first quarter of 2021 helped bolster Tesla’s quarterly profit figures. Musk stated that Tesla would resume accepting bitcoin once the mining process transitions to more sustainable energy. Additionally, the company is exploring other cryptocurrencies that use less energy per transaction compared to bitcoin. Presently, Tesla’s website still indicates that it accepts bitcoin for transactions. Musk acknowledged the promising future of cryptocurrency but stressed that its adoption should not come at a great cost to the environment. Currently, bitcoin consumes as much electricity annually as the Netherlands, resulting in a significant carbon footprint. This energy inefficiency conflicts with Tesla’s mission to accelerate the world’s transition to sustainable energy. While Musk has endorsed the cryptocurrency Dogecoin as his favorite, Tesla has not invested in it. Notably, the value of Dogecoin plummeted after Musk referred to it as a “hustle” during his appearance on Saturday Night Live. Following Musk’s recent tweet, the value of bitcoin has also decreased by about 4%, from USD 54,829.14 to USD 52,593.46 (as of 6:21 PM ET), according to Coindesk. (ANI)
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Deepak Sen is a tech enthusiast who covers the latest technological innovations, from AI to consumer gadgets. His articles provide readers with a glimpse into the ever-evolving world of technology.