Bitcoin Plunges 12% After Tesla Stops Accepting it as Payments on Carbon Footprint Worries
The price of Bitcoin started retracing after the electric car manufacturer Tesla announced its decision to revoke its support for the numero uno crypto as a mode of payment. Through a tweet, on May 13, the CEO of Tesla, Elon Musk, stated that the company’s worries about the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal.”
Even though Musk forecast that the crypto “has a promising future,” he finished by stating that the emergence of cryptocurrencies “cannot come at a great cot to the environment.”
Nevertheless, the company has not brushed away the plan of accepting Bitcoin as a mode of payment in the future, with the announcement pointing out that the company will restart accepting Bitcoin “for transactions as soon as mining transitions to more sustainable energy.” Musk further stated:
“We are also looking at other cryptocurrencies that use”
However, not everyone is in agreement with the view of Elon Musk. Many crypto enthusiasts on social media platform have refuted the CEO’s claim regarding the carbon footprint creation due to Bitcoin mining. The Twitter user with handle “The Wolf of All Streets” has pointed that “miners primarily use renewable energy.”
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
Nevertheless, the third Global Cryptocurrency Benchmarking Study conducted by the University of Cambridge in October 2020 indicated that a maximum of 76% of cryptocurrency mining utilizes some form of renewable power, it is assessed that a mere 39% of the aggregate power used by Proof of Work cryptocurrencies is based on green energy.
At the time of writing this article, Bitcoin was trading at $50,661, reflecting a loss of 11.7% in the past 24 hours.