After a deeper study of Bitcoin, Tesla made a choice consistent with its climate protection views. The company announced that it is suspending the purchase of cars using this cryptocurrency until a more environmentally neutral solution is found for its mining and transactions.
Cryptocurrencies have been increasingly criticized lately for their huge carbon footprint. Mining virtual coins like Bitcoin requires a lot of energy as the machines behind these networks solve equations. At the moment, the energy for this is obtained in a non-ecological way, which is disliked by those who care about the environment.
Tesla CEO Elon Musk posted a statement via Twitter indicating that the company has suspended car purchases using Bitcoin. Tesla expresses its concern about the rapid increase in the use of fossil fuels for Bitcoin mining and transactions. The greatest danger is posed by coal, which has the worst emissions of any fuel.
However, the company remains firm in its belief that cryptocurrencies are a great idea on many levels and have a promising future. Despite this, at the moment their mining and transactions on the network are too expensive for the environment, which can cause irreparable harm to our planet. This is too high a price, which is why Tesla made this decision.
The company has announced that it will not sell Bitcoins and will not use them for transactions for now. Once mining moves to more sustainable energy, Tesla may resume its Bitcoin operations. Since cryptocurrencies are a great and convenient solution, the company is investigating other cryptocurrencies that use <1% of Bitcoin's energy per transaction in order to be able to use them.
"Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.
Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment.
Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction."
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP— Elon Musk (@elonmusk) May 12, 2021
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.