Tesla’s Elon Musk dropped a bombshell on Twitter yesterday by announcing that the electric vehicles and clean energy company were suspending vehicle purchases using Bitcoin.
Musk’s statement claimed the high fossil fuel consumption involved in Bitcoin mining influenced Tesla’s decision. The suspension is to last until a safer mining process is developed. Twitter went crazy after the use, with users contributing their varied views on Tesla’s decision. Crypto users especially condemned Tesla’s decision.
Bitcoin Bulls Condemn Tesla’s Decision
MicroStrategy’s CEO and huge Bitcoin advocate Michael Saylor termed Tesla’s excuse for the suspension as ironic. According to Saylor, there is no incremental energy used in Bitcoin payments. What electric vehicles and energy company Tesla was involved in was transacting in Bitcoin and not mining. The energy-consuming part is securing the crypto-asset network, which Saylor explained will reduce to negative over time. Tesla’s decision, therefore, makes no sense if we go with the energy consumption excuse.
Morgan Creek Digital’s Anthony Pompliano also chipped in to debunk the high energy excuse. Pompliano reminded Musk that 75% of Bitcoin miners used renewable sources. Stock market investor Preston Pysh pulled up a screenshot of Tesla’s Elon Musk agreeing with Jack Dorsey’s that Bitcoin incentivizes renewable energy.
Tesla Could Be Switching from Bitcoin to Dogecoin Payments
Another significant set of commentators believe that Tesla is halting Bitcoin payments so that Dogecoin can take its place. The fact that Tesla’s Elon Musk posted the announcement after he did a poll if people would be interested in Tesla accepting Dogecoin payment adds to this notion. In the statement, Tesla declares its support for cryptocurrencies has not ceased. Furthermore, the electric vehicles and clean energy company stated that it is exploring other digital coins that use less than 1% of Bitcoin’s energy.
Houston-based TRG Datacenters estimated rated Dogecoin’s energy consumption at 0.12KWh. Bitcoin, on the other hand, fell at 707 KWh. The statistics mean that it only uses around 0.017 percent of what Bitcoin uses. So Crypto users now just have to wait and watch out for Tesla’s next move.