Elon Musk suggests Tesla may dump cryptocurrency.
Elon Musk has responded to critics, escalating his rhetoric against bitcoin and defending his decision to suspend Tesla payments.
Elon Musk has escalated his dispute with bitcoin, cryptically hinting that Tesla may sell its bitcoin holdings.
Tesla CEO Elon Musk – whose tweets have a significant impact on the cryptocurrency market – has responded to his critics.
He sent shockwaves through the market last week when he announced that Tesla would suspend vehicle purchases made using bitcoin.
“While we believe cryptocurrency is a good idea on many levels and has a bright future, this cannot come at the expense of the environment,” the statement read.
“Tesla will not sell bitcoin and will continue to use it for transactions until mining shifts to more sustainable energy sources.
We are also investigating alternative cryptocurrencies that consume less than 1% of bitcoin’s energy/transactions.”
This morning, a tweet alluded to the backlash he’s been receiving from bitcoin investors, who have seen the currency’s price plummet.
“Bitcoiners will slap themselves next quarter when they learn Tesla sold the remainder of their #bitcoin holdings. With the amount of hatred directed at [Elon Musk], I wouldn’t blame him…” @CryptoWhale made the announcement.
Mr Musk responded with the following: “Indeed.”
This follows his February 9 announcement that Tesla would invest $1.95 billion in cryptocurrency.
Any attempt to “sell” those bitcoins would almost certainly have a significant impact on the bitcoin price.
Mr Musk also mentioned an incident in China in which a coal mine was flooded, affecting bitcoin “mining.”
“Bitcoin is actually extremely centralised, with the supermajority controlled by a small number of large mining (or hashing) companies,” he wrote.
“In Xinjiang, a single coal mine flooded, nearly killing miners, and bitcoin hash rate fell by 35%. To you, does the term ‘decentralised’ ring true?”
He was referring to an incident in Xinjiang involving the flooding of a mine.
According to Fortune, the blackout affected roughly one-third of all bitcoin’s global computing power.
Bitcoin mining consumes enormous amounts of energy in order to power specialized computers that solve complex but insignificant mathematical problems.
According to some studies, bitcoin production consumes more electricity than Argentina, Poland, Norway, or Switzerland combined. However, even the most conservative estimates indicate that it results in greater carbon emissions than Estonia.
Mr Musk, who founded X.com – which later merged to form PayPal – responded to his critics with the following tweet: “Hey cryptocurrency ‘experts,’ have you ever heard of PayPal?” It’s possible… perhaps… that I know more about how money works than you do.”
Since Mr Musk’s announcement last week, the price of bitcoin has fallen from $76,335 to $57,047.