Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Bitcoin has shed nearly 6% in an hour after Tesla suspended its support for payments in BTC.
The Bitcoin markets are pulling back after electric car manufacturer Tesla suspended its support for vehicle purchases using BTC.
In a May 13 tweet, Teslaâs CEO Elon Musk noted the companyâs concerns regarding the ârapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal.â
While Musk predicted that cryptocurrency âhas a promising future,â he concluded that the rise of digital assets âcannot come at a great cost to the environment."
However, the firm has not ruled out accepting BTC again in future, with the post noting the firm will resume using Bitcoin âfor transactions as soon as mining transitions to more sustainable energy." Musk added:
âWe are also looking at other cryptocurrencies that use <1% of Bitcoinâs energy/transaction.â
On social media, many within the crypto community have contradicted Musk and Teslaâs assertion regarding the environmental impact of Bitcoin mining, with Twitter use âThe Wolf of All Streetsâ noting that âminers primarily use renewable energy.âÂ
However while the 3rd Global Cryptoasset Benchmarking Study by the University of Cambridge in October 2020 showed that up to 76% of cryptocurrency mining uses some renewable electricity, it estimated only 39% of the total power consumed by Proof of Work cryptocurrencies was green energy.
As of this writing, BTC has crashed roughly 6% in the past hour, tumbling from $54,800 to roughly $51,600.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.