Owing to the environmental dangers of Bitcoin mining, Tesla will no longer be accepting Bitcoin as payment for their cars.
It was early last month that Tesla CEO Elon Musk had announced that the car company would accept Bitcoin as payment for their products. The news had wreaked a massive surge for Bitcoin, but unfortunately, the problem of environmental pollution associated with Bitcoin mining has made Musk rethink his decision. For a long time, pollution has been one of the challenges faced by cryptocurrencies, and Musk being an advocate of the use of clean energy, has decided his company will no longer utilize non-environment-friendly currencies.
Major Updates
- Tesla to stop the use of Bitcoin as payment.
- Environmental Pollution and Bitcoin Mining make Bitcoin an environmental hazard.
- Dogecoin may replace Bitcoin on Tesla’s balance sheet.
Following up with a write-up stating the reason for the tweet, Bitcoin has spiked one hell of a bloodbath.
Electric car manufacturing company Tesla has just cut short its latest crypto adoption and has removed Bitcoin from its balance sheet. The decision was made as a result of predominant rates of environmental pollution due to the heavy electronics use that is associated with Bitcoin Mining.
Bitcoin price declined significantly by over 5%. This got the coin to then trade above $48, 000.
The first instance of the company’s crypto adoption started with a US$1.5 billion investment in Bitcoin. The investment had raked in great gains, and that was before Musk decided to add the currency to the Tesla balance sheets.
However, Tesla‘s Bitcoin ride was halted over environmental issues. Although he agreed with the efficiency of cryptocurrencies, he is not willing to join in on the bandwagon at the “great cost of the environment.”
As for Tesla’s Bitcoin holdings, Musk said the reserve would go untouched until Bitcoin Mining operations would rely on more sustainable energy. Meanwhile, Tesla is still willing to add a more energy-efficient currency, and many are of the speculation that Dogecoin could be the coin to replace Bitcoin on the balance sheet.
Conclusion
Musk has concluded that this prominent part of Bitcoin's existence does more harm to the environment than good. Tesla, which is known for constantly sourcing out ways of improving via clean energy, therefore wants nothing to do with Bitcoin.
Question of the Day
What do you think about the latest decision by Tesla CEO Elon Musk?ay
