Tech News

Bitcoin is back: Elon Musk confirms Tesla would resume accepting Bitcoin for Tesla vehicles

Elon Musk, CEO of Tesla, has confirmed that his electric vehicles company will resume accepting bitcoin. Tesla suspended purchases using bitcoin as it raised concerns with Bitcoin’s “increasing use of fossil” for mining. Tesla argued that mining Bitcoin with non-renewable energy goes against its “green environment” standards.

Tesla announced on March 24 that it would accept Bitcoin payments shortly after the automobile company invested $1.5 billion in the cryptocurrency. The company said it bought Bitcoin for “more flexibility to further diversify and maximize returns on our cash.”

According to CNBC, Tesla’s news that it will accept Bitcoin propelled the cryptocurrency’s price even higher. Bitcoin price peaked at $44,200 per coin. Tesla benefited from the boost as well, as its stock jumped by 2% following the news. Musk stated his commitment to Bitcoin after the announcement saying: “I do at this point think Bitcoin is a good thing, and I am a supporter of Bitcoin.”

Tesla’s auto factory in Fremont, Calif. (Photo: Tesla)

However, Tesla made a repeal shortly after accepting Bitcoin for its automobile payments. The company expressed its displeasure after it realized Bitcoin miners were using non-renewable energy for mining which goes against their green environment policy. Tesla, on the other hand, kept its $1.5 Bitcoin stock.

Tesla has suspended vehicle purchases using Bitcoin. 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.
Musk announced on Twitter

All cryptocurrency traders were affected by Tesla’s remark. The price of cryptocurrencies decreased dramatically after Elon Musk’s comments, according to the Washington Post. Bitcoin was trading at a price of at least $54,600 but fell to $46,980.

YAN’AN, CHINA – AUGUST 23: Image shows the house in which the bitcoin mining machines used power illegally on August 23, 2017 in Yan’an, Shaanxi Province of China. Over 1,600 bitcoin mining machines were seized by police on August 23, since these machines illegally used the electricity of inter-mountain oil fields in Yan’an. (Photo by Zhang Jianquan/Huashang Daily/VCG)

Last month, Jack Dorsey and Elon Musk announced on Twitter that they would be leading a forum called “The B word“. This forum will bring together all Bitcoin miners and investors to discuss the cryptocurrency’s future.

During the Forum yesterday, Musk mentioned an improvement in the Bitcoin mining energy mix. Tesla has noticed certain advances in the Bitcoin mining process, according to him. Tesla will conduct additional due diligence to confirm, but he expects Tesla to begin taking Bitcoin for sales shortly.

I wanted a little bit more due diligence to confirm that the percentage of renewable energy usage is most likely at above 50% and that there is a trend towards increasing that number, and if so, Tesla would resume accepting Bitcoin. Most likely the answer is that Tesla would resume accepting Bitcoin.
Musk explained during the B Word Forum

What does this announcement mean?

Elon Musk’s announcement is significant for miners and dealers. As a result of this news, Bitcoin prices are expected to rise soon, allowing traders to recoup their losses over time. This is also a good time to invest in cryptocurrency.

Read Next

Joseph Appiah-Duku

Joseph Appiah-Duku is a Digital Marketing Specialist at NALO Solutions, leveraging his IT background to excel in PPC, SEO, and content marketing. His career began in IT, but extensive training in digital marketing facilitated a seamless transition. Joseph's expertise has driven significant month-on-month increases in traffic and sign-ups at NALO Solutions. He has authored articles on SEO algorithm changes, guiding businesses in adapting to industry shifts. In addition to his writing, Joseph hosts video shows and webinars, engaging audiences and promoting NALO Solutions as a passionate brand ambassador. His commitment to the company's values and solutions is evident in all his endeavors. Outside of work, he enjoys watching sci-fi movies and learning new languages, showcasing his love for continuous learning.