Tesla‘s Consideration to Bring Back Bitcoin Payments, Reasons And Effects. The C.E.O of the electric car-making company Elon musk who once said in May that the company would no longer accept Bitcoin for its purchases made a contrary statement concerning the same issue barely two months after.
Why Tesla Stopped Accepting Bitcoin For Payments
According to him, his concern was about the environmental impact of mining Bitcoin since it uses a huge amount of electricity.
“Most likely the answer is that Tesla would resume accepting Bitcoin,” said Mr. Elon Musk during the B-word cryptocurrency conference.
According to the billionaire, he has been investigating the usage of fossil fuel in Bitcoin mining: “I wanted a little bit more due diligence to confirm that the percentage of renewable energy usage is most likely at or above 50% and that there is a trend towards increasing that number, and if so Tesla would resume accepting Bitcoin.”
Elon Musk Criticized For His Decisions
The C.E.O had been attacked earlier this year because of his decision to start accepting Bitcoin as payment. The dispute was a result of the proposition that using Bitcoin being a high energy-intensive cryptocurrency for purchase opposes Tesla‘s objectives since mining the cryptocurrency poses a potential environmental threat.
Concerns have been raised over whether the energy for mining the cryptocurrency is from fossil fuel or renewable resources. Musk was also criticized for influencing cryptocurrency with his status.
Mr Musk Admits He Helped Crypto Price Increase – Tesla‘s Consideration to Bring Back Bitcoin Payments
During his appearance at the B-word conference, the billionaire C.E.O stated that apart from the Bitcoin owned by Tesla and his rocket company SpaceX, He personally held Bitcoin, Ethereum, and Dogecoin.
He also admits that he had purposely helped to artificially increase the price of cryptocurrencies before selling them “I might pump, but I don’t dump… I definitely do not believe in getting the price high and selling… I would like to see Bitcoin succeed.”
The price of Bitcoin and Ethereum seemed to be affected by his statement at the conference having an increase of about 6% and 10.6% respectively.
Presently, the price of Bitcoin stands above $60,000. Its increase in price stems from the fact that some big firms including Tesla invested in Bitcoin and also by its mainstream acceptance as an investment and a means of payment, accompanied by the rush of retail cash into stocks, exchange-traded funds, and other risky assets.