Elon Musk causes Bitcoin’s pricing to plummet by pulling Tesla’s support

Elon Musk causes Bitcoin's pricing to plummet by pulling Tesla's support

Elon Musk causes Bitcoin’s pricing to plummet by pulling Tesla’s support

Tesla’s CEO, Elon Musk, has confirmed that Tesla will no longer accept payments in Bitcoin, citing concerns at the growing fossil fuel use of Bitcoin miners. 

This announcement has caused Bitcoin’s value to plummet below $50,000, dropping the currency’s value by over 10%. Elon has also stated that Tesla will not be selling its Bitcoin but has signalled that their will use it for transactions again when cryptocurrency mining transitions to more sustainable energy sources. 

In Elon’s statement, it was also revealed that Tesla is looking to accept additional cryptocurrencies as Tesla payment mechanisms, hoping to support currencies that require less than 1% of Bitcoin’s energy use per transaction. With this move, Tesla hopes to support ecologically-minded cryptocurrencies, which makes a lot of sense for the green energy giant.

With Tesla being a provider of electric vehicles, solar energy solutions and other clean energy products, supporting Bitcoin is a stance that is ideologically inconsistent with Tesla’s goal of a “zero-emissions future”. At this time, it is unknown how Elon’s move will impact Bitcoin in the long term and if his move will cause any Bitcoin mining operations to look at greener energy sources. 
 

 Elon Musk causes Bitcoin's pricing to plummet by pulling Tesla's support

 
While many people call Elon’s statements regarding Bitcoin “market manipulation”, it is worth noting that Tesla will not be selling any of its Bitcoin. Bitcoin’s dip in value was not caused by Tesla selling out its stake in the currency, and the company does not appear to be investing in the currency further during this dip in value. 

Bitcoin has become a major investment vehicle for the wealthy, who have predicted that inflationary forces will cause the value of assets to rise and the value of currencies to fall over the next decade. With this in mind, assets like Gold and Bitcoin are seen as prime investment targets. That said, Bitcoin’s long-term future remains uncertain, especially as the power usage of the cryptocurrency’s operation continues to skyrocket. 

Below is Elon Musk’s statement regarding Tesla’s pause in Bitcoin payments; 

    Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel. 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

 

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Elon Musk causes Bitcoin's pricing to plummet by pulling Tesla's support