Tesla Stops Accepting Bitcoin As Payment For Cars

The world’s renowned electric automobile company Tesla has stopped accepting Bitcoin (BTC) as a payment option for its vehicles, citing the environmental impact of the energy used in maintaining the network.

Tesla is Concerned About Bitcoin’s Intensive Energy Usage

The founder of Tesla, Elon Musk, recently shared the notice, wherein the company asserted that more fossil fuels are being burned as energy for mining Bitcoin. Hence, they decided to discontinue the Bitcoin payment option, as Tesla is keener on the improvement of the planetary condition. 

Cryptocurrency is a good idea on many levels, and we believe it has a promising future, but this cannot come at a great cost to the environment.

the company noted.

At the moment, Tesla said it’s looking at accepting other cryptocurrencies that use less than one percent of Bitcoin’s energy. As for its Bitcoin reserve, the company noted that it wouldn’t sell off its holdings. Tesla might resume Bitcoin payments if/when sustainable energy is used for BTC mining activities, according to the notice.

Crypto Twitter Reaction to Tesla’s Decision

Tesla’s announcement to stop accepting Bitcoin sparked mixed feelings for crypto users. Some argued that the decision was only to impress/support their application to enter into the United States’ renewable fuel credit market. 

Whatever be the reason, some people believe it’s for a good cause and that it can influence more usage of renewable energy for Bitcoin and cryptocurrency mining. 

Meanwhile, Bitcoin took a hit after the announcement. About $2 billion USD in BTC futures were liquidated as the cryptocurrency declined below $50,000 USD. At the time of writing, Bitcoin was trading at $48,066 on CoinMarketCap.

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