Elon Musk said that due to the use of fossil fuels, Tesla will no longer accept Bitcoin | Tesla

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Tesla has suspended customers using Bitcoin to purchase its vehicles, Elon Musk It was stated on Wednesday that the reason was that people were concerned about the use of fossil fuels for Bitcoin mining.

After tweeting, Bitcoin, the world’s largest digital currency, fell more than 7% and traded at $52,669.

Musk stated that Tesla will not sell any bitcoins and intends to use bitcoins for transactions as soon as mining transitions to more bitcoins. Sustainable energy.

Musk said: “We are also studying other cryptocurrencies that use less than 1% of Bitcoin’s energy/transactions.”

Musk said in March Tesla Customers can use Bitcoin to buy their electric cars.

When high-performance computers compete with other computers to solve complex mathematical problems, digital currencies are created. Energy intensive Currently, the process of generating electricity generally relies on fossil fuels (especially coal).

The latest data from the University of Cambridge and the International Energy Agency show that at the current rate, the amount of energy consumed per year by this type of bitcoin “mining” is the same as that of the Netherlands in 2019.

Tesla revealed in February that it had purchased $1.5 billion in Bitcoin, and then began accepting it as a car payment in March, driving the world’s largest cryptocurrency to soar by about 20%.

Musk said on Wednesday that Tesla will not sell any bitcoin and intends to use bitcoin for transactions immediately after the transition from mining to more sustainable energy sources.

On Wednesday, Edward Moya, a senior market analyst at currency trading company OANDA, said that Musk is ahead of investors in focusing on sustainability.

Moya said: “The environmental impact of mining Bitcoin is one of the biggest risks to the entire crypto market.” “In the past few months, everyone has ignored the news that Bitcoin consumes more electricity than Argentina and Norway. “

Chris Weston, head of research at Pepperstone, a Melbourne broker, said Musk’s reaction was a blow to Bitcoin, but acknowledged the currency’s carbon footprint.

Weston said: “Tesla’s image is environmentally friendly, and Bitcoin is clearly the opposite.”

The LAN network cable has been plugged into the Bitcoin mining computer server at the Bitminer factory in Florence, Italy. Photo: Alessandro Bianchi/Reuters

Musk himself firmly believes in digital currencies and also advocates the use of clean technology.

Musk said: “On many levels, cryptocurrency is a good idea. We believe it has a bright future, but it will not bring a huge price to the environment.”

The dominance of Bitcoin miners in China and the lack of incentives to exchange cheap fossil fuels for more expensive renewable energy may mean that emissions problems cannot be resolved soon.

According to data from the Alternative Finance Center of the University of Cambridge, Chinese miners account for approximately 70% of Bitcoin production. During the summer rainy season, they tend to use renewable energy (mainly hydropower), and use fossil fuels (mainly coal) for the rest of the year.

The blockchain analysis company said that, theoretically, the source of bitcoin can be traced, thereby increasing the possibility of charging a premium for green bitcoin. The adoption of stronger climate change policies by governments around the world may also help.

Some Bitcoin proponents pointed out that the existing financial system (with millions of employees and computers in air-conditioned offices) also consumes a lot of energy.

Musk has always been a fan of other cryptocurrencies and has posted some tweets this year. These tweets make The once obscure digital currency Dogecoin Well known. Musk said on Sunday that his commercial rocket company SpaceX will accept cryptocurrencies inspired by meme as payment for next year’s launch of the moon landing mission.

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