Recently, Tesla announced that the company will not accept bitcoin payment. The decision is made because Bitcoin mining requires a huge amount of electrical energy which affects the environment. Elon Musk said in a tweet that bitcoin is not environmental-friendly to use, so Tesla suspended the bitcoin payments transactions.
In past, when tesla started to accept bitcoin as a payment method, the value of bitcoin increased exponentially. It reached around $53k in just a few days. After that, a spike in the number of investors and bitcoin miners has been seen till now. However, after the recent tweet of Elon Musk, Bitcoin’s value came down to after touching a peak of $60k. Now, one Bitcoin is equal to around $45k.
How Bitcoin is affecting the Environment?
As the number of Bitcoiners surged, more energy is required to process the big transactions of bitcoin worldwide. This energy comes from burning fossil fuels which largely include coal burning for the production of energy. Moreover, Bitcoin procures 30 times more energy than the total number of Tesla Electric cars across the world. Elon Musk said that we can not promote the use of cryptocurrency by endangering the environment of our planet earth. However, tesla will accept other cryptocurrencies for transactions and investments which has <1% of energy usage than bitcoin.
Now, Musk decided to accept Dogecoin instead of bitcoin and asked his followers on Twitter “Do you want Tesla to accept Dogecoin” and the answer of the majority is “Yes”. Therefore, the Dogecoin value will probably go up. Elon Musk also decided to sell off the company’s remaining bitcoin holdings.
