Those of you into your cryptocurrency will be waking up to some pretty jarring news on Thursday 13 May: The Bitcoin value has nose-dived, thanks solely to a Tweet shared by Elon Musk overnight. The tech billionaire may have hosted Saturday Night Live this weekend, but the latest price for BTC is no laughing matter for investors.
Although a price recovery is underway, concerns about the environmental impact posed by Bitcoin mining – the process to generate ‘coins’ for the cryptocurrency – led Musk to state that Tesla would not be accepting this particular method of payment anymore. The Pretoria-born magnate is wary about the consumption of fossil fuels involved, too.
“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 them all. Cryptocurrency is a good idea and we believe it has a promising future, but this cannot come at a great cost to the environment.”
“Tesla will not be selling any Bitcoin and we only intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at cryptocurrencies with lower-than-1% of BTC’s energy/transaction ratio.”
Elon Musk’s favoured cryptocurrency has gone the same way as many other competitors – crashing by almost 11% overnight to $0.44. However, the bloodbath has been mitigated by some early signs of recovery on Thursday. As any digital investor worth their salt knows, these peaks and troughs are all part of the crypto-rollercoaster.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP— Elon Musk (@elonmusk) May 12, 2021