The crypto market staggered as Tesla CEO Elon Musk said that the company would no longer receive car payments in Bitcoin (BTC). The CEO announced that this decision is the company’s way of reducing the consumption of fossil fuels being used in the process of Bitcoin mining. The new development is coming after Tesla just started accepting bitcoin payments in late March.
Musk explained that the reason for the new decision is BTC’s draining use of energy.
“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.”
According to the CEO, Tesla will no longer sell any more of the $1.5 billion stash of BTC that the company bought earlier in the year. The automobile company’s Bitcoin sale in the first quarter of 2021 helped pad its quarterly profit.
Musk further explained that the company has plans to start accepting other crypto assets that do not consume as much power as BTC. He says:
“…We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.”
Bitcoin’s heavy energy consumption has always been a major concern for members of the community. Last month, both Square and ARK Invest published a white paper stating that Bitcoin incentivizes renewable energy. Musk and Square CEO Jack Dorsey agreed with the conclusion when the whitepaper was released.
Image Credits: Pixabay
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