The electric carmaker has announced it will no longer accept Bitcoin as payment for cars. The company cited environmental concerns with the cryptocurrency's mining process, which uses up huge amounts of electricity. It is not yet clear whether this move signals a concern from Tesla or just an experiment that wasn't working out well in terms of profits and sustainability issues.
Tesla had begun accepting Bitcoins less than 2 months ago before announcing their decision to discontinue acceptance on May 31st 2018
"Most likely the answer is that Tesla would resume accepting Bitcoin," Mr Musk said during the B Word cryptocurrency conference.
He also said that he had been investigating fossil fuel usage in Bitcoin mining: "I wanted a little bit more due diligence to confirm that the percentage of renewable energy usage is most likely at or above 50%, and that there is a trend towards increasing that number, and if so Tesla would resume accepting Bitcoin."
Some Tesla investors and environmentalists attacked Tesla's decision earlier this year to start accepting Bitcoin as payment for their vehicles. The dispute highlighted the issue of what are seen as environmentally-friendly electric cars being purchased using an energy-intensive cryptocurrency like Bitcoin, which is mined by computers that use large amounts of electricity from sources such as fossil fuels or renewables. Elon Musk was also criticised for using his popularity and position in society to back cryptocurrencies - it has been argued that he should not be promoting these products because they may have a negative environmental impact on our planet if mining continues at its current rate.
Some Tesla shareholders and environmentalists recently criticized Telsa’s decision towards early 2018 to begin taking payments through bitcoin (BTC) – one iteration of crypto currency
"I might pump, but I don't dump… I definitely do not believe in getting the price high and selling" said Mark Zuckerberg. "I would like to see Bitcoin succeed."
Following his comments on cryptocurrencies at B Word conference of emerging technologies, Facebook CEO's comment had a positive effect on the prices of both bitcoin (BTC) and ethereum (ETH). The Coindesk website showed that BTC was up 6% from $31,952 while ETH increased 10.6%.