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Tesla suspends bitcoin payment options until it's more sustainable
Tesla CEO Elon Musk announced on Twitter that Tesla will suspend the option to pay for vehicles with Bitcoin. The reason is that the environmental footprint that Bitcoin has is not in line with Tesla's vision.
Tesla seeking sustainability
The tweet also stated that Tesla does not plan to sell any of the bitcoin they hold and that they hope to accept bitcoin again when it becomes more sustainable. After the joke Elon Musk made about Dogecoin last week, it seems he is now talking about a more serious issue.
Bitcoin mining costs a lot of electricity that is not yet generated by green energy. It is likely that more than 90% of mining will use green energy in the future. But, this is not the case yet. Clearly, since Tesla wants to make cars sustainable, they see this as a problem. Must also tweeted that the company will look at other cryptocurrencies that use less than 1% of Bitcoin's energy volume.
Musk looking at the bigger picture
Bitcoin not being sustainable has been a discussion for a long time. Many ESG-focused organizations have had concerns about the energy consumption of the blockchain network. Elon Musk's decision to suspend Bitcoin payments may mean retail investors will begin to look into more sustainable cryptocurrencies. There are many option Tesla could look at and these will likely be proof of stake blockchains.
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