Elon Musk offers a Glimmer of Hope as he Spells Out When Tesla will Start Accepting Bitcoin (BTC) Payments
Tesla CEO Elon Musk has said that his electric vehicle company Tesla will again start accepting Bitcoin (BTC) as payment once it gets confirmed that the miners have started to utilize clean energy. This assurance of Musk has given a glimmer of hope to the traders and investors across the globe as it could eventually help in subsiding the FUD (Fear, Uncertainty, and Doubt) about the leading cryptocurrency.
Recently, Sygnia CEO Magda Wierzycka has accused Elon Musk of manipulating Bitcoin’s price and went on to call for United States Securities and Exchange Commission (SEC) to investigate the billionaire. Wierzycka accused Musk of knowingly pumping the price of BTC and then selling a “big part of his exposure at the peak.”
While replying to Wierzycka’s allegations, Musk responded on Sunday by saying:
“This is inaccurate… Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving [the] market.”
In April 2021, Elon Musk had acknowledged that a portion of Tesla’s Bitcoin holdings were sold. According to him, this was done to prove the liquidity of the asset as an alternative to cash. This comment came a month after he had confirmed that Tesla had bought US$1.5 billion worth of Bitcoins, added them to their balance sheet, and decided to accept BTC as payment for its vehicles.
However, in May 2021, Musk tweeted that his company Tesla would stop accepting Bitcoin payments due to the BTC network’s rapidly increasing use of fossil fuels. This tweet led to the meltdown in the Bitcoin price. This was coupled with China’s intent of banning Bitcoin mining. The price of Bitcoin dropped by more than 54% from mid-April to mid-May.
To do some repair work and boost investor sentiment, Elon Musk came out with his plans on Sunday. He laid out a plan saying when his electric vehicle company will again start accepting Bitcoin as a preferred mode of payment. Musk said:
“When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.”
In a recent Bitcoin miners’ meeting of a voluntary, self-regulating industry body called Bitcoin Mining Council, MicroStrategy CEO Michael Saylor, invited Elon Musk. The meeting came up with a mandate where the miners decided to use more renewable energy options and at the same time increase the transparency of cryptocurrency mining.
Though there has been severe criticism of the BTC mining industry, reports say that a strong majority of miners already use alternative sources of energy. An analyst with Ark Investments, Yassine Elmandjra, said in April 2021 during an interview on CNBC that around 3/4th of the Bitcoin miners use carbon-free sources in their operations.
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