Citing concerns about the carbon footprint of Bitcoin mining, Elon Musk tweeted on Wednesday that Telsa is suspending vehicle purchases with the cryptocurrency.
Tesla has suspended vehicle purchases via Bitcoin and raised concerns about the impact of cryptocurrency on the climate, the company’s CEO Elon Musk announced on Wednesday.
“We are concerned about the rapidly increasing use of fossil fuels for the exploitation and transactions of Bitcoin, especially coal, which has the worst fuel emissions,” Musk wrote.
Bitcoin, the world’s largest digital currency by market capitalization, fell nearly 8 percent after the tweet according to Coinbase data.
“Cryptocurrency is a good idea on many levels and we believe it has a promising future, but that may not come at a great cost to the environment,” Musk wrote.
The head of Tesla and SpaceX is a staunch supporter of cryptocurrencies and has inspired major changes in the market for digital currency prices this year, including Bitcoin and Dogecoin.
Tesla and Bitcoin pic.twitter.com/YSswJmVZhP
– Elon Musk (@elonmusk) May 12, 2021
In January, Bitcoin rose when Musk posted #bitcoin on his Twitter channel. Its touch of Midas cryptography was relaunched in February after Tesla revealed in regulatory files that andHe hadn’t bought $ 1.5 billion from Bitcoin and that people could use the cryptocurrency to buy Tesla electric vehicles.
As Bitcoin has climbed new heights this year, so have climate activists sounding the alarm about the large amounts of energy that Bitcoin mining consumes. That’s when mining computers made up of powerful computers (sometimes thousands of them working in unison) compete in very Bitcoin transactions to earn new coins.
Researchers at Cambridge University estimate that Bitcoin mining consumes as much electricity annually as the entire country of Argentina, and China accounts for 65% of Bitcoin mining globally.
This carbon footprint is at odds with Musk’s support for clean energy. But don’t give up Bitcoin.
In his tweet on Wednesday, Musk said Tesla would not sell any of its Bitcoin and that the electric vehicle maker intends to continue using the cryptocurrency for transactions “as soon as mining moves to more sustainable energy.”
He also said Tesla is studying more energy-efficient cryptocurrencies.