Tesla no longer plans to accept payment in bitcoin

Elon Musk withdrew support for Bitcoin on Wednesday after he announced that Tesla has suspended plans to accept payments for its cars in cryptocurrencies. He attributed the changed attitude to environmental concerns about the mechanisms used to verify bitcoin transactions, noting that a broader rethinking of digital currencies may question its appeal among other companies. Bitcoin fell 9% on Thursday to $49,769. After the news was released, Bitcoin fell to $46,045, the lowest level since March 1. Musk has been severely criticized for Tesla’s support of Bitcoin, including ESG investors who prioritize environmental, social and governance issues. The Tesla CEO’s passion for energy-consuming currencies runs counter to the climate change concerns he has always said led him to get involved in electric vehicles.

Elon Musk withdrew support for Bitcoin on Wednesday after he announced that Tesla has suspended plans to accept payments for its cars in cryptocurrencies. He attributed the changed attitude to environmental concerns about the mechanisms used to verify bitcoin transactions, noting that a broader rethinking of digital currencies may question its appeal among other companies.

Tesla (Tesla) revealed that it has invested $1.5 billion in corporate cash into the digital currency and plans to accept it within a day to pay for its car. The news is widely regarded as an important verification of Bitcoin in the corporate world and triggered a debate among corporate treasurers about the use of the currency.

In a brief statement posted on Twitter on Wednesday, Musk said: “We are concerned that [the rapid increase in the use of fossil fuels] for the mining and trading of Bitcoin, especially coal, has the worst emissions of all fuels.” Bitcoin uses a “proof of work” mechanism, relying on so-called miners, who use large-scale computer clusters to use consensus algorithms to solve difficult problems. Musk’s statement concluded by stating that Tesla is “researching other cryptocurrencies that use less than 1% of Bitcoin’s energy/transactions”-this comment may be a digital currency that uses other less power-hungry methods to verify transactions. Open the door to convenience.

The statement seems to indicate that Tesla no longer uses Bitcoin in its treasury management business. Company officials recently described the currency it sold as proof of its liquidity, making it a suitable asset for the treasurer-if Tesla no longer intends to use it as a source of liquidity, this consideration will be weakened. The reversal of Bitcoin may also cast a shadow on Dogecoin. Dogecoin is the biggest increase this year, thanks in large part to Musk’s strong support. Like Bitcoin, Dogecoin uses a proof-of-work mechanism.

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