Chief Executive Officer Tesla, Elon Musk, said on Twitter that Tesla has "suspends vehicle purchases with bitcoin", because of effects of bitcoin mining on the environment. Many have said that mining is an energy bomb.
The price of bitcoin fell by about 5% in the first minutes after the announcement of Musk.
In February, Tesla revealed that it had bought $ 1,5 billion worth of bitcoin and planned to invest in other cryptocurrencies in the future. At that time, the company also announced that it would start accepting bitcoin as a payment method for its products.
Tesla's support for cryptocurrency has helped increase the value of cryptocurrencies, including Bitcoin and dogecoin, which have skyrocketed in recent months.
What Musk said on Twitter about the cessation of bitcoin shopping:
"Tesla has suspended vehicle purchases with Bitcoin. Concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and trading… Cryptocurrency is a good idea on many levels and we believe it has a promising future, but it may not come at a high cost to the environment… We are also looking at other cryptocurrencies that use <1% of Bitcoin energy / transaction".
Following is Elon Musk's tweet:
Different opinion: ARK Investment: Bitcoin mining can be good for the planet
Major investors and large companies, including Tesla, Square, Metromile and Nexon, turned to Bitcoin in recent months. Although there are others who do not agree. "There is a lot of debate about whether it is good or bad, what the real value is or whether it is a bubble", It has been said, among other things.
Tesla may not accept Bitcoin as a payment for the purchase of vehicles, but Musk clarified that the company intends to keep the bitcoins it already has and, as he said on Twitter, will consider more cryptocurrencies requiring less energy for transactions.
In the first quarter of 2021, Tesla bought $ 1,5 billion worth of digital assets and then sold $ 272 million worth of cryptocurrencies. According to a company financial report on April 26, profits from bitcoin sales boosted profitability.