When Tesla decided to temporarily stop accepting Bitcoin as a means of payment because the company was suddenly concerned about the environmental consequences of the coin, it was reason to shock the crypto market. In fact, the Bitcoin fell below $ 48.000 after Tesla decided not to accept the coin for payments anymore. Question is whether Elon Musk is playing with the crypto market and the environmental consequences are the real reason?

turn around

The turnaround comes barely after a month and a half after the automaker had embraced the payment of Bitcoin and Tesla invested no less than 1,2 billion euros in the crypto currency Bitcoin. The electric car manufacturer announced this in the annual report to the American stock market watchdog SEC. CEO Musk has already spoken out several times about Bitcoin. His investment was a vote of confidence in Bitcoin, which is still considered by many as a way to conduct illegal transactions and launder black money.

Musk has even twittered the price of crypto coin dogecoin. A tweet from Elon Musk, who called the coin “the crypto currency of the people,” caused the dogecoin to skyrocket. An analyst calls the step opposite the Financial Times a possible game changerAnd takes into account that other companies will follow the example of the automaker.

mines

The so-called 'mining' of Bitcoins takes a lot of energy. This process, the creation of the virtual currency, is done on large computers that gulp energy. Mining mainly takes place in countries where energy costs are low, such as in China. There, a lot of coal is still used as an energy source. The price of the Bitcoin also always responds if an incident occurs there, experts say.

Dutchman Alex de Vries has with his Bitcoin Energy Consumption Index mapped out how unsustainable Bitcoins actually are. The results are mind-boggling: mining Bitcoins takes more energy than the annual energy consumption in all of Ireland, Nigeria or Bulgaria.

Read also: Tesla's billion-dollar investment in bitcoin cryptocurrency

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Tesla boss Elon Musk
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