- Tesla again continues with Bitcoin Transaction.
- In mid-may, Tesla stopped car purchases with bitcoin.
- The price of bitcoin raised about 8% during the day.
Elon Musk stated, “When there’s confirmation of reasonable (~50%) clean energy usage by miners with the positive future trend, Tesla will resume allowing bitcoin transactions.”
Moreover, the CEO of South African asset manager Sygnia, Magda Wierzycka commented Musk’s tweets on bitcoin prices were market manipulation and must have manipulated an investigation by the U.S. Securities and Exchange Commission4.
Henceforth, Tesla revealed that it purchased $1.5 billion worth of bitcoin. Also, Tesla noted that it starts accepting bitcoin as a payment method for its products.
Even more, in mid-may Tesla stopped a car purchase with bitcoin. This is because of concern over how cryptocurrency mining, which requires banks of powerful computers, contributes to climate change.
However, in May Musk noted,
“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.”
Accordingly, on Sunday Elon Musk denied Wierzycka’s statement of market manipulation, he explains, nearly 10% of bitcoin holding sold by Tesla to confirm that Bitcoin (BTC) could be liquidated easily without moving the market. $272 million worth of digital assets sold by Tesla during the first quarter. This helped it reduce operating losses by $101 million, revealed by the company during the earnings statement.
Moreover, on social media Musk commented about cryptocurrency often sends price tumbling, but appeared to have a sudden effect Sunday. Although, the price of bitcoin raised about 8% during the day.
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