With his tweets he made Bitcoin soar more than once and with a tweet Elon Musk made this Wednesday that it plummeted more than 10%. The South African businessman and CEO of Telsa announced that he will no longer accept Bitcoin as a form of payment for his electric vehicles due to its alleged environmental impact. He himself made it clear in a tweet through his official account.
“We are concerned about the rapid increase in the use of fossil energy for mining and Bitcoin transactions, especially coal.” The Telsa CEO noted in a statement posted on Twitter.
“Cryptocurrencies are a good idea … but it can’t be at great cost to the environment.” Musk noted, backing off previous comments.
Last month, Tesla announced that its earnings in the first three months of the year amounted to $ 438 million, $ 16 million more than the previous year. Thanks to the fact that he had sold Bitcoin and the credits of environmental regulation.
Elon Musk, the CEO of Telsa has been one of the highest profile cryptocurrency advocates. Tweeting often about Bitcoin and Dogecoin.
Comments from the Telsa CEO on Twitter in recent months helped turn Dogecoin, which started as a kind of social media joke. In the fourth largest cryptocurrency in the world.
His statements come less than two months after Tesla announced that it would accept Bitcoin. Which then sparked criticism from some environmentalists and investors.
Bitcoin plunged more than 10% in hours
The combination of the highest year-on-year inflation data in the United States in 13 years. And, the announcement by the electric car company Tesla that it will stop accepting Bitcoin as a form of payment was a lethal combo for the cryptocurrency, which lost more than 10% of its value in the last few hours.
Bitcoin was trading until tonight at $ 47,376 per unit. 18.33% less than the almost USD 58,000 to which it was sold at noon on Wednesday. Its lowest price since the end of April when it had also suffered a similar fall.
Among the alleged reasons, the announcement by the United States Bureau of Labor Statistics (BLS) that year-on-year inflation in April was 4.2% – the highest since September 2008 – triggered expectations of a rate hike by part of the Federal Reserve (FED) to stop the rise in prices. Which affected the price of all assets in the financial market, both stocks and cryptocurrencies.
However, the final blow for Bitcoin came around 7 p.m. when Tesla, the company chaired by the influential Elon Musk, announced, as we already mentioned, that it will stop accepting BTC as a form of payment for its cars. Due to the high energy consumption and use of fossil fuels that mining of this cryptocurrency uses.
Mark Cuban Replicates Elon Musk and Says Mavs Will Continue to Accept BTC
Billionaire investor Mark Cuban will not follow in the footsteps of Tesla CEO Elon Musk in withdrawing his support for paying with Bitcoin (BTC).
In response to Musk on Wednesday, the Dallas Mavericks owner remarked that the Mavs will continue to accept Bitcoin, Ether (ETH) and Dogecoin (DOGE) as a means of payment for tickets and merchandise.
“We know that replacing gold as a store of value will help the environment.” Cuban opined, adding: “Reducing the use of large banks and currencies will benefit society and the environment.”
On Wednesday, Musk issued a statement announcing that Tesla will no longer accept Bitcoin payments due to the carbon footprint associated with mining BTC.
Bitcoin MicroStrategy whale buys an additional 271 BTC
MicroStrategy, the Virginia-based business intelligence firm, has added another 271 Bitcoin (BTC) to its strategic reserves. Underscoring CEO Michael Saylor’s growing conviction in the digital asset.
Purchases were made until May 13 for an average price of USD 55,387, revealed Saylor on Thursday. MicroStrategy now has 91,850 BTC on its books for an average purchase price of $ 24,403.
MicroStrategy also disclosed the purchase to the U.S. Securities and Exchange Commission, or SEC, through a Form 8-K filing that was filed Thursday.
Although the purchase of MicroStrategy appears to have coincided with the latest correction in the price of Bitcoin, fueled by Elon Musk’s sudden decision to stop accepting BTC payments on Tesla vehicles, the business intelligence firm is not syncing the market. Saylor indicated in February that he does not intend to lower his company’s BTC purchase rate, as it has accumulated another $ 1 billion in digital assets.