Bitcoin prices have shed nearly 6% within an hour as soon as the news of Tesla suspending its support for payments in BTC made headlines. The Bitcoin markets are observed backing off after the American electric vehicle manufacturer Tesla has suspended its payment support for vehicle purchases using digital currency Bitcoin.
Bitcoin Fell As Soon As Tesla Suspended Its Support for BTC Payment
In an early tweet today by the CEO of Tesla, Elon Musk, mentions:
“Company’s concerns regarding the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal.”
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
The CEO of Tesla predicted:
“The cryptocurrency has a promising future. But the rise of such digital assets and the associated technologies cannot come at a great cost to the environment.”
Tesla Is Not Closing the Option of Accepting Bitcoin in Future
Although, it is clear that the firm has not ruled out the option of accepting Bitcoin completely. Moreover, the firm will look for alternative modes of payment in cryptocurrencies again in the future.
According to Elon Musk:
“The firm will proceed using Bitcoin for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use.”
Elon Musk has faced conflicts from many within the crypto community on social media. The move also clarified Tesla’s statement concerning the environmental impact of Bitcoin mining.
The 3rd Global Cryptoasset Benchmarking Study by the University of Cambridge stated:
“Up to 76% of cryptocurrency mining uses some renewable electricity, it estimated only 39% of the total power consumed by Proof of Work cryptocurrencies was green energy.”
Bitcoin crashed to a 24-hrs low of 46,980 from a 24-hrs high of 57, 251. At the time of writing, the first digital currency had crashed 10.34%, currently hovering around $50,600. Moreover, the market dominance of Bitcoin continues to decline, as it now stands at 41%.