Musk said that Tesla no longer plans to accept Bitcoin payments

Elon Musk withdrew support for Bitcoin on Wednesday after he announced that Tesla has suspended plans to accept payments for its cars in cryptocurrencies.

He attributed the changed attitude to environmental concerns about the mechanisms used to verify bitcoin transactions, and pointed out that a broader rethinking of digital currencies may cause people to question its growing appeal among other companies.

Musk Face Sharp rebuke Tesla’s support for Bitcoin includes ESG investors who prioritize environmental, social and governance issues.Tesla CEO’s enthusiasm for energy-intensive currencies Ran He has always said that concerns about climate change led him to get involved in electric vehicles.

Tesla (Tesla) said that in February, the price of Bitcoin skyrocketed by 15% in one day. Invest its $1.5 billion in corporate cash Convert to digital currency, and plan to accept it within a day to pay for its car. The news is widely regarded as an important verification of Bitcoin in the corporate world and the market. Sparked a debate Information about the use of the currency in the company’s treasury.

in a Short statement Musk posted on Twitter on Wednesday: “We follow [the] The use of fossil fuels in Bitcoin mining and trading is increasing rapidly, especially coal, which has the worst emissions of all fuels. “

Bitcoin uses a “proof of work” mechanism, relying on so-called miners, who use large-scale computer clusters to use consensus algorithms to solve difficult problems.

Musk concluded in the statement that Tesla “is studying other cryptocurrencies that use less than 1% of Bitcoin energy/transactions”-this comment may be used to verify transactions using other less power-hungry methods Digital currency helps.

Ether, the second most valuable cryptocurrency, said it has switched to another method called “Proof of Stake”, which does not rely on the same method. Energy consumption method.

Musk also seems to have vowed that Tesla will withdraw from active Bitcoin trading in order to increase its future profits. The company’s investors were surprised to find last month that it had sold a portion of its cryptocurrency shares within a few weeks. $101 million in profit. In addition to the credit of the sales environment, the currency trading profits also made up for the lack of Tesla’s core auto manufacturing business losses in the first quarter.

The Tesla boss said in a statement: “We will not sell any Bitcoin.” Although he did not further disclose how long the automaker will hold the cryptocurrency, he plans to use its remaining cash in Bitcoin.

The statement seems to indicate that Tesla no longer uses Bitcoin in its treasury business. Company officials recently described the currency it sold as proof of its liquidity, making it a suitable asset for the treasurer-if Tesla no longer intends to use it as a source of liquidity, this consideration will be weakened.

After Musk’s statement, the price of Bitcoin fell by about 4%.

Bitcoin’s reversal may also be overshadowed by dark clouds Dogecoin, This is a cryptocurrency that has achieved some of the biggest gains this year, thanks in large part to Musk’s strong support. Like Bitcoin, Dogecoin also uses a proof-of-work mechanism.

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