After Musk stopped accepting Bitcoin to buy Tesla cars due to climate issues, Bitcoin prices plummeted

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The value of Bitcoin was severely hit after industrial designers. Engineer Elon Musk announced that Bitcoin would no longer be accepted as a payment method for the purchase of Tesla cars. Musk, also the founder, CEO, CTO, and chief designer of SpaceX; announced his news on Twitter.

The business giant said that more and more fossil fuels, especially coal used for bitcoin mining, are the reason for the decision to stop accepting payments in the world’s number one digital currency. He also mentioned in his tweet that he believes that cryptocurrency has a bright future, but this should not be a huge price for the environment.

The announcement led to a sharp drop in the price of the world’s most famous cryptocurrency, resulting in a loss of more than 300 billion U.S. dollars in the market value of Bitcoin. But Bitcoin recovered about 50% of its losses on Thursday, only the day after Tesla boss Elon Musk said that his company would stop accepting digital tokens, plummeting 17%.

At 1150 GMT, the price of Bitcoin rebounded to around $49,808. After falling from around US$54,819 to US$45,700 on Wednesday, this is the lowest price since March 1. Within two hours of Musk’s tweet, the stock price fell sharply.

Ethereum is the second largest cryptocurrency. It fell by 14% to a low of US$3,550, temporarily rose above US$4,000, and then fell back to around US$3,750.

Tesla CEO Elon Musk expressed his concerns about the use of fossil fuels to mine coins. The excavation done by the user himself can be compared to solving a difficult calculation. The process itself is very complicated, it consumes a lot of computer power-and therefore also consumes a lot of energy.

Most miners live in China, where a large amount of energy is still produced by coal-fired power stations. The University of Cambridge recently determined that the Bitcoin network now uses more energy than Argentina as a whole.

Critics say that Musk’s own SpaceX plan is also very laborious to the environment, which may have a lasting negative impact on global temperature. The Falcon 9 rocket uses fossil fuel, Rocket Propellant 1, or RP-1, which is a highly refined kerosene. If SpaceX achieves its goal of launching a rocket every two weeks, the company will emit approximately 4,000 tons of carbon into the atmosphere each year.

Another problem is the rare metals used in Tesla cars. They usually come from mines that are destructive to the environment and are processed in a less environmentally friendly way.

The amount of rare metals is very small and can only be found in very inconvenient places. In order to get only a small amount, the workers must move a lot of dirt. This special form of mining is mainly carried out in Jiangxi, which is a rare earth mine in China. The workers are said to have dug a hole eight feet deep and poured ammonium sulfate into the hole to dissolve the sandy clay. Several environmentally damaging acid baths and the final baking process must reveal the rare metals needed to make Tesla cars. These baking processes are usually carried out in coal-fired furnaces, which emit large amounts of carbon dioxide into the atmosphere.

In February of this year, Tesla announced that it could handle Bitcoin, after which Tesla invested $1.5 billion in Bitcoin. After this investment, the value of the coin soared. The company does not intend to sell the purchased bitcoins, but is now looking for other cryptocurrencies that use less fossil fuel energy.



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