NEW!Incredible offer for our exclusive subscribers! Read More

Elon Musk Says Tesla Is Suspending Bitcoin Payments Over Environmental Concerns – CoinDesk

1 Mins read

In a tweet Wednesday, Tesla CEO Elon Musk said the electric-car company is discontinuing bitcoin payments.


Tesla had announced it was accepting BTC for car payments starting in February. The announcement came in concert with a $1.5 billion investment in bitcoin as a treasury asset.

Musk has since continued his championship of DOGE, the meme currency currently boasting a market cap of $58 billion, according to CoinDesk data.

Cryptocurrency “cannot come at great cost to the environment,” the electric carmaker said in a statement tweeted by Musk. The statement was hedged, but only slightly, with praise for crypto’s “promising future” and a promise to investigate less energy-hungry networks than Bitcoin’s.

Bitcoin, a proof-of-work (PoW) blockchain reliant on energy-intensive mining units, has come under fire from environmental groups as its price has surged to all-time highs. The second-largest cryptocurrency by market cap, ether, also relies on PoW but is in the process of switching to proof-of-stake.

Tesla’s pledge turns up the heat on the race to move bitcoin away from fossil fuels. The company’s decision to accept bitcoin was a watershed moment for corporate bitcoin adoption. Tesla’s turnabout on environmental matters will likely give fuel to the social and even political moment clamoring for change to the world’s largest cryptocurrency by market cap.

Elon Musk’s Tesla Sold Bitcoin in Q1 for Proceeds of $272M

The sudden freeze of Tesla’s bitcoin payments hands a decisive win to bitcoin’s energy critics. But it does not spell doom for Tesla’s remaining bitcoin investment nor its crypto experiment. “Tesla will not be selling any bitcoin,” the statement read. “We intend to use it for transactions as soon as mining transitions to more sustainable energy.”

No such plans are publicly known. The most reputable report on the matter says nearly 40% of bitcoin’s energy consumption was carbon-neutral.

Tesla did test the liquidity of the bitcoin market with a $272 million sell announced during its most recent earnings call.

Bitcoin’s price is now down nearly 6% over the past 24 hours, though it fell about $2,000 after Musk’s tweet.

This is a developing story and will be updated.

Related posts

Beecrypt deposits and withdrawals of USD Coin (USDC) in the Stellar network.

1 Mins read
We are pleased to announce the opening of access to deposits and withdrawals of USD Coin (USDC) in the Stellar network. Stellar…

Cryptexby cryptocurrency exchanger received licenses in Dubai

1 Mins read , the largest cryptocurrency trading platform, continues to expand its global presence with new licenses in New Zealand and the United…
AltcoinsBTCCryptoOther – business license for the use of crypto

1 Mins read
Firstly business license for the use of cryptocurrencies with a long list of conditions. It was release in New York 2020 The…
Power your team with InHype

Add some text to explain benefits of subscripton on your services.

Leave a Reply

Your email address will not be published. Required fields are marked *