BUSINESS | May 13, 2021 | WOZINGA NEWS
Elon Musk’s shocking move; Tesla to stop accepting Bitcoin
- Elon Musk gains a negative response to Bitcoin investors because of his tweet.
- Tesla company wants cryptocurrency that uses less energy.
By Elah Mae Ariate & Marielle Petere Wozinga Journalist
Tesla has refused to accept bitcoin payments for vehicle purchases. “Because of the rapidly increasing use of fossil fuels for bitcoin mining,” CEO Elon Musk tweeted on Wednesday.
Also, Musk said that the company is looking into cryptocurrency that uses less energy.
Impacts of Elon Musk’s tweet
After Musk’s comment on Twitter, the price of bitcoin fell about 5% to $51,847. Also, the stock of Tesla fell 4.4% on Wednesday.
The announcement came just over three months after Tesla announced that it would begin accepting bitcoin as payment. At the time, the company also stated that it had purchased $1.5 billion in bitcoin.
Bitcoin relies on computers, which also rely on electricity. The number of computers and the amount of energy required to power them is increasing. The increasing value of bitcoin is equal to the amount of energy it consumes.
Bitcoin miners make bitcoins by solving complex puzzles. The puzzles become more difficult as the value of bitcoin rises. In addition, more computer powers require to solve them.
Bitcoin investors react to Elon Musk’s tweet.
Many people got puzzles because of TESLA CEO Elon Musk’s abrupt decline of bitcoin. The reaction on social media also swifts.
Almost all Bitcoin investors are not happy with Musk’s tweet. Andrei Jikh, one of the bitcoin investors said, ‘’I refused to believe that one of the smartest people on earth Elon Musk just realized that Bitcoin uses electricity.”
Some people are predicting the next move of Elon Musk. Lil Mook, Bitcoin investor said, “I see what the play is. He asked if Tesla should accept dogecoin, then stops accepting Bitcoin. Watch the next move.”