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On Wednesday, the CEO of Tesla, Elon Musk stated on Twitter that Tesla is going to suspend bitcoin for purchasing any vehicle, out of concern over continuously enhancing usage of fossil fuels for mining bitcoin. After this declaration of Elon Musk, the bitcoin price dropped nearly 5% in the first few minutes.
In February, in an SEC filing, Tesla disclosed that it bought $1.5 billion bitcoin price and it might invest in bitcoin more or in other cryptocurrencies in the upcoming future. At that time, the organization told it will begin accepting bitcoin as a method of payment for purchasing its products.
Tesla supports cryptocurrency and contributed to the cryptocurrencies’ values, such as dogecoin and bitcoin, escalating in these latest months. Tesla has refused to take Bitcoin for purchasing Tesla vehicles because they are focusing on the rapidly enhancing usage of fossil for Bitcoin transactions and mining, especially coal, which comes as the worst outflow of any fuel. On many levels, cryptocurrency is a brilliant idea and they believe it has a prosperous future, but it might not come at a great cost to the environment.
In the upcoming future, Tesla will not go to sell any Bitcoin, and they want to utilize it for any kind of transaction as soon as transactions of mining continue to more continuous energy. They are also observing other cryptocurrencies that utilize <1% of Bitcoin’s transaction/energy. Some of the great corporate buyers and investors of mainstream businesses including Square, Tesla, Nexon, and Metromile have mobbed to bitcoin, viewing the virtual currency as a promising inflation barrier when central banks print money to mitigate the anguish of coronavirus economies.
Author
Vinay Kumar is the brilliant mind behind the technology at Fluper, serving as the Chief Technology Officer. With a wealth of experience in software development and a passion for leveraging the latest technologies, Vinay drives the technical vision of Fluper's projects. His expertise in creating scalable and robust solutions ensures Fluper delivers best-in-class products exceeding client expectations.
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