On May 13, Tesla CEO Elon Musk said that the electric car manufacturing company will stop accepting Bitcoin as payments, citing environmental concerns. Since the announcement, several proof-of-stake cryptocurrencies have increased in their price due to Tesla stating in the announcement that it is looking for other less-energy intensive alternative cryptocurrencies.
Elon Musk Ditches Energy-Intensive Bitcoin
On May 13, Elon Musk said that cryptocurrency is a “good idea on many levels” but it cannot come at a great cost to the environment.
He even said that it “high time for a carbon tax” and that while he strongly believes in crypto, “it can’t drive a massive increase in fossil fuel use.”
Musk further added that Tesla would no longer be taking Bitcoin in payment for cars, as a result of concerns about the environment, stating that:
“We are concerned about rapid increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”
However, Tesla, he added, won’t be selling any of the Bitcoin it owns. Since Musk’s announcing the news on Twitter, the price of Bitcoin fell from $57,000 to as low as $48,000.
Proof-of-Stake Cryptocurrencies Spike After Musk’s Bitcoin U-Turn
Since Musk’s announcement on ditching the energy-intensive cryptocurrency, other alternative cryptocurrencies that uses proof-of-work algorithm have increased in price.
For instance, the largest PoS cryptocurrency by market cap Cardano (ADA) has increased by over 17% during the past 24 hours to a price of $2.15.
While Polygon (MATIC) in the past 24 hours has increased by almost 59.3% to a price of $1.79 in the past 24 hours. Stellar (XLM)has increased by 2.6% to a price of $0.68.
All the above-mentioned cryptocurrencies use a proof of contribution consensus mechanism using a small number of trusted validators.
Despite all of these coins being on an upward momentum, Musk appears to be fully focused on Dogecoin, a proof-of-work cryptocurrency.