Tesla stops taking Bitcoin for vehicle purchases, citing environmental harm

Tesla stops taking Bitcoin for vehicle purchases, citing environmental harm

Tesla stops taking Bitcoin for vehicle purchases, citing environmental harm

Tesla has stopped accepting bitcoin as cost for its automobiles out of concern that it’ll contribute to better consumption of fossil fuels, based on a press release CEO Elon Musk tweeted Wednesday. Tesla had solely simply began accepting bitcoin in late March.

Musk additionally mentioned that Tesla will not promote any extra of the $1.5 billion stash of bitcoin it bought earlier this 12 months. Tesla bought a few of that bitcoin within the first quarter of 2021, which wound up serving to pad the corporate’s quarterly revenue figures.

Tesla says it could resume accepting bitcoin (and would think about promoting extra of it) as soon as the method of mining bitcoin “transitions to extra sustainable power,” based on the assertion. The corporate can also be “taking a look at different cryptocurrencies that use <1% of Bitcoin’s power/transaction.” As of this writing, Tesla’s web site signifies it’s going to nonetheless settle for Bitcoin for transactions.

“Cryptocurrency is a good suggestion on many ranges and we consider it has a promising future, however this can’t come at nice price to the setting,” Musk’s assertion reads.

Bitcoin makes use of up as a lot electrical energy yearly because the Netherlands, based on one estimate. All that power comes with an enormous carbon footprint. And there’s no easy repair as a result of the blockchain that the cryptocurrency is constructed on is purposely power inefficient. That clashes with Tesla’s mission to “speed up the world’s transition to sustainable power.”

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Musk has additionally hyped one other cryptocurrency, Dogecoin, which Tesla has not invested in. Musk has referred to as Dogecoin, which was invented as a joke to satirize bitcoin, his favorite cryptocurrency and “the people’s crypto.” The cryptocurrency’s price plunged after Musk referred to as it a “hustle” on Saturday Evening Dwell. Bitcoin’s worth has equally plunged about 4 p.c after as we speak’s Musk tweet, to $52,593.46 at 6:21PM ET from $54,829.14 at 6:06PM, based on Coindesk.

With reporting by Justine Calma and Elizabeth Lopatto


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