Crypto Market tumbles after Tesla halts bitcoin payment. Elon Musk in a tweet said “Tesla has suspended vehicle purchases using Bitcoin. We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”
Though the tweet also suggests Tesla will hold onto its bitcoin and investigate other currencies using less than 1% of Bitcoin’s energy.
Musk also mentioned energy usage over the past few months is insane. He added a link to the Cambridge Bitcoin Electricity Consumption Index.
Many crypto enthusiasts disagreed with Musk’s argument, they consider mining the asset uses less energy than the traditional banking system.
Elon Musk has been a supporter of cryptocurrency, the tweet was a surprise for many. Earlier in February, Tesla added $1.5 billion worth of Bitcoin to its balance sheet. After selling $272 million worth of bitcoin earlier this month, still holds nearly 90% of the bitcoins. Tesla also started accepting Bitcoin payments in late March, making us wonder about Musk’s sudden change of heart.
Musk also supports Dogecoin, after announcing Tesla’s decision to stop accepting Bitcoin payment ran a Twitter poll. The poll asked his followers if they would want Tesla to accept Dogecoin. Nearly 4 million people voted with 78.2% supporting the proposal.
Looks like the stage is being set for Dogecoin, and rightly answered by Musk when asked “what is Dogecoin?” he said, “it’s a hustle… to the moon!”
The Tesla news got the markets tumbling, Bitcoin dropped 13.4% and traded below $50,000. While Ethereum dropped around 13.7% and Dogecoin is down 18.3%, trading at $0.40 at the time of writing. Most of the other coins such as Polkadot, Chainlink, and Solana were also in the red zone.