An unexpected shift was observed earlier today when Tesla, the leading electric vehicle manufacturer announced that it will no longer be accepting Bitcoin as payment for its vehicles. This news came as a shock to many who were hoping to see Bitcoin at new heights after Tesla’s initiative to accept crypto payments.
The news adversely affected the Bitcoin market as a decrease in the crypto’s price was recorded shortly after Elon Musk’s announcement. The price of Bitcoin has been quite volatile in the past few months, nonetheless, the cryptocurrency itself is not any less significant.
People who intend on trading Bitcoin should keep an eye out on the market trends and use ByBit, which is one of the top crypto exchanges.
Why Tesla Stopped Accepting Bitcoin Payments?
While Tesla still has its Bitcoin holdings, the company has suspended the acceptance of Bitcoin as payment for its cars due to concerns regarding the cryptocurrency’s impact on the environment.
Elon Musk, the CEO of Tesla, tweeted a few hours ago, stating:
“We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,”
In March, Tesla announced its initiative to accept Bitcoin payments for its vehicles, after disclosing its SEC filing which revealed the purchase of $1.5 billion worth of Bitcoin by the company. Last month the company also shared its earnings report for the first quarter of 2021, which showed that Tesla had sold its Bitcoin holdings worth $272 million.
While many suspected the company will continue to sell the Bitcoin it holds, Tesla has released a new statement:
“Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.”
What Does it Mean for the Bitcoin Market?
According to reports, the price of Bitcoin dipped below $50,000 shortly after Tesla’s announcement. However, it recovered soon and went up to $51,000 (at the time of writing).
The price of Bitcoin has seen its occasional ups and downs and yet it has retained its position as the top cryptocurrency in the world and it is still likely to surge higher in the future.
Therefore, if the potential investors are looking to step into the crypto world then Bitcoin is a suitable digital asset they should opt for.