Elon Musk says Tesla has Stopped Accepting Bitcoin for its Electric Vehicles on Environmental Concern, BTC Price Tanks

Elon Musk has recently said that his company Tesla has stopped accepting Bitcoin as a payment method for buying its electric cars. He said the company took this decision on the concern that Bitcoin mining uses an excessive amount of carbon-based energy. Following this comment, the BTC price dropped by over 17% on early Thursday.

On Wednesday afternoon, Musk said:

“We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”

He also said:

“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.”

While making his statement about Tesla not accepting BTC as a payment method, Elon Musk made it clear that the company will not sell its holdings in the largest cryptocurrency it accumulated in the last couple of months. The Tesla CEO went on to say that the company still has plans of using Bitcoin as a payment method “as soon as mining transitions to more sustainable energy.”

Data confirmed that BTC/USD pair initially dropped to US$45,650 and failed to establish US$50,000 as support.

Elon Musk has also said that Tesla is currently looking for other cryptos as the preferred payment method that uses less than 1% of the energy/transaction of Bitcoin (BTC). He stopped short of identifying specific alternatives.

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