Tesla CEO, Elon Musk, tweeted a message informing suspension of bitcoin in purchasing vehicles. Musk tweeted his concern regarding the use of bitcoin which is hampering sustainable growth.
Bitcoin is the world’s biggest digital currency and has become the talk of the town. After Musk announced the suspension on Twitter, Bitcoin fell more than 11 per cent and traded at 50,480 dollars. On Nasdaq, Tesla’s stock dropped around 589.89 dollars, by 4.42 per cent.
However, in March, Elon Musk announced that their customers could use Bitcoin to purchase electric cars. Moreover, this decision to drop bitcoins comes into effect as Tesla is looking forward to more sustainable energy for mining
Bitcoin Mining work and Tesla
Mining of Cryptocurrency like bitcoin involves sophisticated use of computers that solve extremely puzzled computational math problems. This complex procedure relies on the electricity generated through fossil fuels. Bitcoins consume a massive chunk of electricity and coal is the major fossil fuel involved in its production.
Also, few other investors along with environmentalists had raised issues regarding the mining of Bitcoin that uses way more power generated through fossils. Furthermore, analysts like Edward Moya, a senior market analyst at, OANDA said, “The environmental impact from mining bitcoins is one of the biggest risks for the entire crypto market,”
They raised concerns regarding the extensive use of energy that has made Tesla Inc take this step which the customers had not seen coming. Bitcoin mining devours the exact energy as Netherlands in 2019 as per the University of Cambridge and International Energy Agency data.