Tesla founder and CEO Elon Musk tweeted on May 13 that the company will no longer accept Bitcoin payments due to environmental concerns. According to Musk, the future of digital assets cannot come at a cost of the environment, stating that the massive use of electricity and coal is a serious concern.
‘We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel. Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment,’ Musk said in the tweet.
Musk also said in his tweet that he won’t be selling any Bitcoin until a more sustainable alternative to acquiring coins appears.
‘Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.’
In an interview with Yahoo Finance Live, Grayscale CEO Michael Sonnenshein agreed with Musk, saying that the crypto sphere should think of solutions to address the massive energy consumption of producing digital currencies.
‘This is an opportunity for the entire crypto space to really think about moving the narrative towards something that’s a little more solutions-oriented when it comes to energy consumption,’ said Sonnenshein.
He also viewed the price drop as an opportunity for profitable trades. ‘If your conviction hasn’t changed and you still believe in the role that bitcoin can play in your portfolio and you can buy cheaper than you could yesterday, that’s a compelling trade for a lot of investors’, continued Sonnenshein.
In line with Sonnenhein’s statement, Co-CIO of investment firm Skybridge Troy Gayeski said that Bitcoin is the least volatile among cryptocurrencies but users should still expect big dips over time. He said that people should look at the big picture before backing out of using digital assets.
‘If you have any exposure to crypto, even bitcoin which is by far and away from the least volatile, you have to be prepared for 20% to 30% pullbacks. But if you step back and think of the macro environment, you’re in an environment where you have an unprecedented monetary stimulus,’ he said.
Find more news in the crypto space at Cryptoshimbun and stay updated on the latest news and updates on blockchain and cryptocurrencies.