Telsa CEO, Elon Musk revealed his company had put all plans to accept cryptocurrency as payment for electric vehicles on hold.
He revealed this in a tweet and it set the price of Bitcoin on a downward slope. Thursday May 13 saw the price of Bitcoin drop about 12% to less than $50,000. Elon Musk gave the cryptocurrency’s high environmental cost as the reason for the move.
In a note posted on twitter, the CEO expressed concern about the rapid increase in the use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.
While he admitted that cryptocurrency is a good idea with a promising future, he was keen on the fact that this should not come at a great cost to the environment.
People have taken to social media to express surprise over this move as Tesla vehicles had already been purchased with Bitcoin and there are questions about Musk’s awareness of its environmental impact. This is because TESLA had disclosed in February, a $1.5 billion investment in Bitcoin while Musk had made a tweet in late March that people “can now buy a Tesla with Bitcoin”.
The CEO has said Tesla still plans to use Bitcoin after the currency finds cleaner energy sources. On a futuristic note, he revealed that Tesla is looking at other cryptocurrencies that use 1% of Bitcoin’s energy/transaction.