- Elon Musk said Tesla will accept Bitcoin payments again once “mining” uses 50% renewable energy.
- Validating Bitcoin transactions requires many computers to use large amounts of power.
- Tesla started accepting Bitcoin in March, then quit in May, citing environmental concerns.
Tesla will resume accepting bitcoin payments for its cars once cryptocurrency miners can show they use around 50% clean energy, CEO Elon Musk said in a tweet on Sunday.
“When there is confirmation of reasonable (around 50%) clean energy use by miners with a positive future trend, Tesla will resume allowing Bitcoin transactions,” he said. This is the first time Musk has detailed the terms under which the company would resume accepting Bitcoin.
Musk announced in March that Tesla would accept payment in Bitcoin, then reversed that position in May when he said the company will no longer accept Bitcoin because it was too costly for the environment to mine the cryptocurrency. He mentionned at the time Tesla intended to use Bitcoin again in the future “as soon as mining shifts to more sustainable energy.”
Musk’s Sunday tweet Boosts Bitcoin Price To Nearly $ 40,000. His tweet was in response to a Co-telegraph article containing quotes from Magda Wierzycka, CEO of asset manager Sygnia. Wierzycka said Musk deliberately raised the price of Bitcoin so that Tesla could sell much of it. Musk disputed this.
“This is incorrect. Tesla only sold about 10% of the holdings to confirm that BTC could be liquidated easily without moving the market,” Musk said. He said in April that Tesla had sold 10% of its Bitcoin holdings prove it was a viable alternative to cash.
The electric car maker bought $ 1.5 billion worth of Bitcoin in February.
—Elon Musk (@elonmusk) June 13, 2021
Bitcoin uses a “proof of work” computer process to validate transactions on its blockchain, which requires many computers to use large amounts of energy. Estimates on the amount of renewable energy used by Bitcoin miners to power their computers varies widely, but according to Cambridge University, 65% of Bitcoin mining takes place in China, where coal is the most common type of energy production.