For months now, Tesla and SpaceX CEO Elon Musk continued to receive praise from the crypto industry as the world’s favorite billionaire continually supported crypto. Elon Musk has been referencing cryptocurrencies through his tweets for years, but he really started getting involved in 2021.
Earlier this year, Tesla announced that it will accept crypto payments and invested $ 1.5 billion in BTC, with Musk himself admitting to personally holding a few bitcoins at one point. On top of that, Musk is particularly known for his close ties to Dogecoin (DOGE), which he promoted on a daily basis for a certain period of time.
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Given all that, it came as a huge surprise when Musk recently announced that Tesla will no longer accept BTC payments. According to him, this was decided for environmental reasons as Bitcoin mining is anything but green. Mining and trading are too carbon intensive, which goes against what Tesla stands for. Musk’s change in attitude came just weeks after he argued that adopting BTC could be a boon for renewables.
Bitcoin reacted and the community is not happy
Unsurprisingly, the price of Bitcoin reacted almost immediately, dropping to around $ 8,000 in a matter of hours. In the last 24 hours, the price went from $ 57,470 to $ 48,900 after this news. Fortunately, it appears that the recovery has already begun, as BTC is once again at $ 50,000 at the time of writing.
Understandably, the industry is currently full of confusion and anger, despite Musk’s announcement continuing to claim that crypto is a good idea on many levels and that it has a promising future. Also, it should be noted that Tesla continues to maintain its investment in BTC, which was also noted in the announcement. Musk said Tesla has no plans to sell, but rather to use it for transactions as soon as mining moves to more sustainable energy.
Some see this as Musk trying to manipulate the market, which, naturally, was met with a lot of fury. However, the announcement itself appears to be a push to find a greener solution for BTC mining. Finally, there are also theories that this is yet another tactic to boost DOGE, as “Elon’s favorite coin” has a much smaller carbon footprint.
if only there was a merge mined cryptocurrency that had a much smaller carbon footprint than bitcoin, and also had a dog on it 🤔🤔
– Shibetoshi Nakamoto (@ BillyM2k) May 12, 2021