By Syndicated Content
May 13, 2021 | 5:44 AM
(Reuters) â Tesla boss Elon Muskâs sudden u-turn over accepting bitcoin to buy his electric vehicles has thrust the cryptocurrencyâs energy usage into the headlights.
Some Tesla investors, along with environmentalists, have been increasingly critical about the way bitcoin is âminedâ using vast amounts of electricity generated with fossil fuels.
Musk said on Wednesday he backed that concern, especially the use of âcoal, which has the worst emissions of any fuelâ.
So how dirty is the virtual currency?
POWER HUNGRY
Unlike mainstream traditional currencies, bitcoin is virtual and not made from paper or plastic, or even metal. Bitcoin is virtual but power-hungry as it is created using high-powered computers around the globe.
Tesla suspends use of bitcoin over rapidly increasing use of fossil fuels
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Value of digital currency falls 17 per cent, after Tesla CEO Elon Musk reverses decision to let customers pay for its cars in bitcoin
Tesla has suspended the auto giant s use of bitcoin just months after announcing it would accept the digital currency as payment for its cars, citing concerns over its huge carbon footprint. Tesla CEO.
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PALO ALTO: Tesla has suspended the use of bitcoin to purchase its vehicles because of climate concerns, chief executive officer Elon Musk said in a tweet on Wednesday, reversing the company s stance in the face of an outcry from some environmentalists and investors.
Bitcoin, the world s biggest digital currency, fell more than 7% after the tweet and was trading at $52,669. Tesla revealed in February it had bought $1.5 billion of bitcoin, before it began accepting it as payment for cars in March, driving a roughly 20% surge in the world s most widely held cryptocurrency.
Musk on Wednesday said Tesla would not sell any bitcoin, and intends to use bitcoin for transactions as soon as mining transitions to more sustainable energy.
May 13, 2021
published at 2:53 AMReuters
A representation of virtual currency Bitcoin and U.S. One Dollar banknotes are seen in front of a stock graph in this illustration taken January 8, 2021.
Reuters/Dado Ruvic
Tesla Inc (TSLA.O) will no longer accept bitcoin for car purchases, Chief Executive Elon Musk said on Wednesday, citing long-brewing environmental concerns for a swift reversal in the company s position on the cryptocurrency.
Bitcoin fell more than 10per cent after Musk tweeted his decision to suspend its use, less than two months after Tesla began accepting the world s biggest digital currency for payment. Other cryptocurrencies, including ethereum, also fell before regaining some ground in Asia trade.