Elon Musk Says Tesla Would Accept Bitcoin again
Tesla accepts Bitcoin as payment once more — the beginning of a bullish trend? Bitcoin is increasing in value.
In response to the announcement, the primary cryptocurrency’s price increased by $1,500, breaking through the $36k and 37k barriers and heading towards $39k.
- Elon Musk, the CEO of Tesla, has announced that Bitcoin acceptance will be resumed.
- The only stipulation is that miners use 50 percent renewable energy!
- Tesla previously accepted bitcoin but stopped due to alleged environmental hazards associated with mining.
Factors that may have prompted Elon’s new decision
On Sunday, Tesla CEO Elon Musk stated that the business would restart bitcoin transactions after checking that miners are using fair amounts of sustainable energy. “When there is confirmation of decent (50 percent ) renewable energy consumption by miners with a good future trend,” Musk stated in a tweet. El Salvador’s Bitcoin Law is supported by the President of the Central American Bank, a bank with $13.5 billion in assets.
The Chinese province of Yunnan does not seem to be shutting down bitcoin miners. Stacks has partnered with Paycoin, a South Korean e-commerce system, to facilitate transactions using their currency STX. Because of this connection, retailers that take Paycoin will soon take STX and Bitcoin as payment options. Taproot, the most important enhancement to Bitcoin’s protocol in years, now has sufficient mining support to ensure activation.
Tesla would start accepting Bitcoin once again
Tesla will reintroduce Bitcoin transactions when there’s confirmation of reasonable (~50%) clean energy usage by miners with the positive future trend, Tesla will resume allowing Bitcoin transactions. According to Wierzycka, Musk purposefully inflated Bitcoin’s price to sell a “significant portion of his exposure at the high.” In response, Musk said, “This is incorrect.” “Tesla just sold 10% of its assets to prove that BTC could be liquidated effectively without disrupting the market.”
Musk stated in April that Tesla had sold a part of its Bitcoin holdings to demonstrate the currency’s liquidity as an alternative to cash. The entrepreneur disclosed that Tesla had put $1.5 billion in Bitcoin to its bank sheet only a month ago. Simultaneously, Tesla would begin taking Bitcoin payments for its automobiles.
However, Tesla’s acceptance of Bitcoin as a payment method was short-lived as Musk expressed reservations about the cryptocurrency’s energy consumption. Musk said on May 12 that his firm would no longer accept Bitcoin payments because of the network’s “increasingly fast usage of fossil fuels…” The Tesla CEO also outlined the parameters for Tesla to resume accepting Bitcoin payments