It didn’t take much time to witness a big price drop of Bitcoin on Thursday when Tesla Inc. Chief Executive Elon Musk made an announcement to stop the sales of their cars using bitcoin on Wednesday. On May 12, Elon Musk made a big announcement to not accept the most popular digital currency, Bitcoin, due to the effects of cryptocurrency mining on the environment. Soon after he made the announcement, the prices of this cryptocurrency dropped down immediately to a more than 2 month low on Thursday.
Tesla Inc. Chief Executive Elon Musk on Wednesday tweeted “Tesla has suspended the vehicle purchases with bitcoin.” He further added that they are more concerned about the fast growing use of fossil fuels that are used for bitcoin mining as well as for its transactions, “especially coal,” and this has the most awful “emissions of any fuel”.
He further continued his tweet by stating that even though cryptocurrency is the future of digital currency and is a valuable idea in many of the cases; however the environment should not be compromised for its future.
In the meantime, he also clarified that currently Tesla won’t be taking bitcoin as a mode of transactions for buying their cars; however, the company will start to use it again if the mining transitions turn into “more sustainable energy.” Till then, Tesla will be looking forward to any other cyrptocurrencies that don’t effect the environment adversely and uses less energy for mining.
The prices of Bitcoin price is said to be dropped by more than $3,000 on Thursday. It is not only Bitcoin that has recorded a price drop but also the shares of Tesla have also dropped around 1.3 per cent in the after-hours trading since Musk’s tweet or announcement on his Twitter account. This year in early February, Tesla has also brought cryptocurrency that is worth $1.5 billion and soon after that Musk also signed his interest in bitcoin on his Twitter account.
In the meantime, Bitcoin bounce back to around $50,000 on Thursday in the Asian trading after dropping down as much as 17 per cent after Elon Musk tweet. Since March 1 this year, the largest cryptocurrency in the world has recorded a big fall from about $54,819 and landed to as low as $45,700. This happened just two hours after Tesla Inc had stopped taking bitcoin to buy its vehicles due to their concerns regarding climate, announced by Elon Musk on Twitter. However, it has recovered around half of that price that has drops early in the Asian trading, and it was last recorded to be traded at around $50,196.
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