Tesla stops taking Bitcoin for vehicle purchases, citing environmental harm

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Tesla has stopped accepting bitcoin as fee for its vehicles out of concern that it’ll contribute to higher consumption of fossil fuels, based on a press release CEO Elon Musk tweeted Wednesday. Tesla had only just started accepting bitcoin in late March.

Musk additionally stated that Tesla will now not promote any extra of the $1.5 billion stash of bitcoin it purchased earlier this year. Tesla bought a few of that bitcoin within the first quarter of 2021, which wound up helping pad the company’s quarterly profit figures.

Tesla says it will 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 be “taking a look at different cryptocurrencies that use <1% of Bitcoin’s power/transaction.” As of this writing, Tesla’s web site indicates it will still accept Bitcoin for transactions.

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

Bitcoin makes use of up as a lot electrical energy yearly as 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 energy inefficient. That clashes with Tesla’s mission to “speed up the world’s transition to sustainable power.”

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 worth plunged after Musk referred to as it a “hustle” on Saturday Evening Reside. Bitcoin’s worth has equally plunged about four % after at the moment’s Musk tweet, to $52,593.46 at 6:21PM ET from $54,829.14 at 6:06PM, according to Coindesk.

With reporting by Justine Calma and Elizabeth Lopatto

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