Bitcoin is the world's leading cryptocurrency and has been used and accepted by various companies in the United States as a mode of payment. TESLA also announced earlier this year it would accept Bitcoin for its electric vehicle sales.
In a recently published article in FOX News, TESLA CEO Elon Musk also announced in March that it would hold the Bitcoin it owns rather than selling or converting it to traditional currency. TESLA purchased a total amount of $1.5 billion worth of Bitcoin, according to a published article in The Wall Street Journal.
Despite reports from the different news outlets about the suspension of TESLA in accepting Bitcoin as a mode of payment, Elon Musk said that it has no plans to sell the Bitcoin it has already accumulated.
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Why Elon Musk Suspends the Use of Bitcoin?
Elon Musk is known as a longtime proponent of cryptocurrencies. However, he raised concerns about the mining process of Bitcoin that affects the environment, according to a recently published article in Reuters. He 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. 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."
According to a study conducted by the Cambridge University, the researchers found out that Bitcoin consumes more electricity than Argentina. This was first reported in BBC News. Furthermore, Elon Musk is the latest businessman leader to express concern about the impact of Bitcoin mining on the environment.
Elon Musk Might Use Other Bitcoin
Even though Elon Musk will suspend the use of Bitcoin as a mode of payment in purchasing electric vehicles, he also said that they are looking into other cryptocurrencies that use less than 1 percent of energy transactions.
Recently, Elon Musk Tweeted and surveyed if netizens will agree to use Dogecoin as a mode of payment in purchasing TESLA's electric vehicles. Just minutes later, it gained his followers' attention, and almost 70 percent agreed to the use of the meme coin Doge.
Just recently, Elon Musk announced that Dogecoin would fully fund his SpaceX mission to the moon. It confirmed Elon Musk's fascination with Dogecoin.
Will it Affect the Trading Market?
Following the announcement of Elon Musk on the suspension of Bitcoin, its value in the market dropped.
Meanwhile, the Dogecoin, which got pumped up before Musk appeared on the Saturday Night Live show, got dumped after the TESLA CEO mentioned and elaborated on what the Dogecoin is all about.
However, Dogecoin is now slowly gaining after Musk's announcement on the use of Dogecoin to fund SpaceX and his recent tweet about TESLA's plan.
Related Article: SpaceX to Launch Dogecoin-Funded Moon Satellite
