What are the problems with accepting bitcoins

Bitcoin on the downside: Tesla no longer accepts cryptocurrencies

Once again, Tesla CEO Elon Musk has caused a lot of movement in the crypto markets. This time he sent the key currency Bitcoin down with a message on Twitter. The car maker Tesla no longer accepts cryptocurrencies due to environmental concerns, which caused the Bitcoin to crash by around 15 percent.

Although Tesla invested the considerable sum of 1.33 billion US dollars in Bitcoin on February 8 and, according to its latest quarterly report, achieved a profit of more than 100 million US dollars just from the sale of 10 percent of its BTC shares could, the car manufacturer is now suddenly rowing back and no longer accepts crypto currencies when buying its vehicles. Company founder and CEO Elon Musk announced this just a few hours ago via the short message service Twitter. The reason: environmental concerns.

Tesla & Bitcoin pic.twitter.com/YSswJmVZhP

- Elon Musk (@elonmusk) May 12, 2021

After Tesla has benefited from the unprecedented "rally" of the digital reserve currency, which has increased in value by more than 500 percent in the last 12 months, and has accepted it as a means of payment for its cars, the company is now taking its toll .

Cryptocurrencies are a good idea on many levels and we believe in a bright future, but this cannot be to the detriment of the environment.

Elon Musk, CEO of Tesla

In the future, buyers will no longer be able to pay for the automaker's electric vehicles, such as the new Model S and Model X, with the digital assets.

Tesla stops trading bitcoins

Tesla intends to only accept Bitcoin as a means of payment again when the prospecting, the so-called mining, of the currency will be carried out exclusively with sustainable energy. According to Elon Musk, Tesla will no longer trade in Bitcoin as long as the energy balance of the cryptocurrency has not improved significantly.

According to Digiconomist's Bitcoin Energy Consumption Index, the energy demand of the cryptocurrency is currently in the order of magnitude of the whole of the Netherlands. The annual CO2 emissions are the same as those of Singapore.

Bitcoin briefly crashes 15 percent

With his message on Twitter, Elon Musk has clearly driven Bitcoin into the red. While the reserve currency was quoted at around 55,000 US dollars shortly before, the asset plummeted to as much as 47,000 US dollars in just a few hours. A price loss of around 15 percent.

This also affected other old coins, such as Ethereum, the second largest crypto currency in terms of market capitalization, which fell from US $ 4,400 to US $ 3,500 (- 20 percent), and Elon Musk's also repeatedly prominent on Twitter advertised Dogecoin (- 18 percent).

The momentum on the major trading platforms such as Binance and Coinbase has recently turned, the price development of all relevant coins is currently clearly pointing downwards.

Update 05/14/2021 9:25 a.m.
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