Tesla CEO Elon Musk has recently announced the decision to suspend the recent move of accepting Bitcoin (BTC) as a form of payment, citing environmental issues.
“Tesla has suspended vehicle purchases using bitcoin. We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”– Tesla CEO Elon Musk.
Tesla Accepts Bitcoin Payments In March
Tesla began accepting the cryptocurrency in March of this year after the company revealed its crypto-holdings in a filing with the U.S. Securities and Exchange Commission (SEC).
In its Q1 filing, Tesla revealed that its BTC holdings had grown to $2.5 billion after the company sold 10% of its holdings essentially to provide their BTC liquidity as an alternative to holding cash on the Tesla company balance sheet.
This week, however, the company publicly cited concerns about the alleged “rapidly increasing use of fossil fuels for bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”
Tesla Suspends Bitcoin Payments In May
This past Wednesday, making a move that left many baffled, Musk tweeted that his self-driving car company, Tesla, had suspended accepting BTC for payment on vehicle purchases.
“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 less than 1% of Bitcoin’s energy/transaction.”– Tesla CEO Elon Musk.
The markets did not take long to react to this bearish news, although the BTC price recovered swiftly and is resting just over $50,000 at the time of publication.
Understandably, many are now left wondering what this means for Bitcoin and cryptocurrency in not just the short-term, but most importantly, on an extended timeline into the future.
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