🔴 Tesla is turning its back on Bitcoin for environmental reasons

The luck has turned. Within two days, Elon Musk planned to incorporate Dogecoin into Tesla’s payment options in order to wipe the extraction of any cryptocurrency from its official website.

This Wednesday afternoon in California, Tesla’s CEO said in a tweet that the brand had “suspended the purchase of vehicles with Bitcoin” in order to “increase the rapid use of fossil fuels for Bitcoin mining”.

Since last March, the manufacturer’s customers have been invited to process their transactions in Bitcoin. A few weeks earlier, Tesla conducted a $ 1.5 billion transaction to integrate the cryptocurrency into its treasury.

Tesla & Bitcoin pic.twitter.com/YSswJmVZhP

– Elon Musk (@elonmusk) May 12, 2021

This reversal appears to be responsible for a sharp drop in the price of Bitcoin. At 12:20 p.m. in France, minutes after Elon Musk’s tweet, Bitcoin rose from $ 55,000, where it had taken daytime assistance to hit $ 52,000. Correction continues at the time of this writing.

Bitcoin exchanges immediately responded to Tesla’s announcement © TradingView

It is currently not clear whether Tesla will exclude Bitcoin ad hoc or permanently. Elon Musk is one of the main people responsible for the rise in the price of the first cryptocurrency by volume and its introduction to institutions since the beginning of 2021.

With the advancing economic and political rise of cryptocurrencies, the ecological challenge is growing. Their blockchain-based system, which enables them to be secure and decentralized, is an ecological sinkhole due to the increased energy demand.

It is difficult for Tesla, and for an electric car manufacturer in general, to promote such an organization. Especially since Bitcoin is the worst student of the current blockchains. The criticism of his energy requirements is all the more pronounced in his “Proof of Work” validation system. What makes it its greatest advancement is also its greatest mistake.

To function, it takes hundreds of thousands of computers and paid miners to verify every transaction. As a result, total electricity consumption would be measured against the city of Hong Kong’s carbon footprint. Ethereum on its own blockchain is no exception. He himself would find it appropriate for the environmental impact of Lithuania.

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