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Tesla CEO Elon Musk says his company is going to stop accepting Bitcoin as payment for its cars, at least until the mining of Bitcoin becomes more environmentally sustainable.
Musk's tweet sent the price of the digital currency down more than ten percent.
Our Seo Eunkyung reports.
Bitcoin's value dropped on Wednesday night after Tesla CEO Elon Musk announced the carmaker would not accept the cryptocurrency for vehicle purchases.
Musk made the comment on Twitter, saying that Tesla was concerned about fossil fuels, especially coal being used during Bitcoin mining and transactions.
But he also tweeted that Tesla plans to hold onto the Bitcoin it already has, and intends to use it for transactions as soon as Bitcoin mining uses more sustainable energy sources.
The Tesla CEO also opened a door for alternative cryptocurrencies, saying he would be looking into other cryptocurrencies that consume less than one percent of the energy involved in a Bitcoin transaction.
The market instantly responded to Elon Musk's comments.
According to the news site Coindesk, the value of Bitcoin plunged near 11 percent only about two hours after his tweet, falling below the 50-thousand-dollar mark.
Musk has been considered as a big advocate of bitcoin.
In March, the Tesla announced that it would accept Bitcoin as a payment method for its vehicles.
In February, the company revealed its investment of one-point-five billion U.S. dollars of Bitcoin.
Market watchers largely see the Musk's latest move as a way to ease concerns of Tesla investors who place high value on climate change and sustainability.
The use of Bitcoin to buy Tesla's electric vehicles had been met with criticism from some Tesla investors, along with environmentalists, due to the vast amounts of energy used to process Bitcoin transactions.
Seo Eunkyung, Arirang News.
#Bitcoin #environmental #accept
2021-05-13, 17:00 (KST)