Elon Musk’s U-Turn will not be able to buy Tesla’s car through bitcoin

Tesla has now taken a u-turn on the announcement that customers can buy a car through Bitcoin. The company has currently banned the purchase of Tesla vehicles via Bitcoin, citing climate-related concerns. This was stated by Tesla CEO Elon Musk on Wednesday via tweet. Bitcoin is currently the world’s largest digital currency.

Bitcoin has broken more than 7 percent

Bitcoin was trading more than 7 percent at $52,669 after Elon Musk’s tweet. Tesla announced in February 2021 that the company had purchased $1.5 billion worth of Bitcoins. Also in March, it was announced that Tesla would accept payment in Bitcoins for car purchases. After this, there was a jump of about 20 percent in the price of Bitcoin.

What has Musk said in the tweet?

In a tweet on Wednesday, Elon Musk said that Tesla would not sell cars through Bitcoins. As cryptocurrency mining converts effects the sustainable energy, the company will re-use Bitcoin for transactions. Musk wrote, ‘We are concerned about the rapidly increasing use of fossil fuels, especially coal, for Bitcoin mining and transactions.’

How Bitcoin mining is harmful to the environment

Bitcoin is created when high-powered computers compete with other machines to solve complex mathematical puzzles. It is an energy-intensive process that currently depends on fossil fuel, especially coal-fired electricity. Some investors and environmentalists have raised concerns since Tesla allowed car purchases from Bitcoin.