In mid-May, Tesla CEO Elon Musk announced that the car producer no longer accepts Bitcoin as a means of payment due to Bitcoin’s high energy consumption. This had a big impact on the entire crypto world, as the Ripple price for example plummeted. But now Elon Musk once again intends to accept Bitcoin as a means of payment with Tesla, albeit under one condition. If Bitcoin starts to run on green energy, Tesla wants to start accepting Bitcoin as a means of payment again. Because of this news, the Ethereum price instantly improved. This shows the effect Musk and Tesla can have on the market, although it is still up for debate if Bitcoin payments will actually be accepted as it is not mined with the help of green energy at the moment.
Commotion in the crypto market
In recent months, Tesla CEO Elon Musk has caused quite a bit of commotion in the crypto market. First, the automaker was one of the first companies to buy as much as USD 1.5 billion worth of Bitcoins, which resulted in a big increase in the BTC value. The company did this by selling a tenth of its holdings, proving Bitcoin liquidity as a good option for holding cash reserves on its balance sheet. The value has now risen to USD 2.5 billion and Tesla has not sold it, nor has it bought any more. In March, Tesla started accepting Bitcoin as a means of payment for cars. As a consumer you could therefore buy a Tesla with Bitcoin. But this was short-lived, as Musk soon banned Bitcoin. Within two months, Tesla stopped accepting Bitcoin again. This is because Bitcoin, in its own words, is not environmentally friendly enough. Musk believes that Bitcoin mining and transactions cost too much energy. This message caused a significant drop in Bitcoin price.
On one condition
Tesla CEO Elon Musk plans to resume accepting Bitcoin as a payment method with Tesla. Provided that there is an official confirmation of a reasonable use of clean energy by the Bitcoin miners with a positive future trend. By reasonable he means that about 50 percent of Bitcoin miners use renewable resources. If this is the case, Musk finds it acceptable enough to accept Bitcoin as a payment method with Tesla, which he posted on Twitter. This is a positive development that encourages Bitcoin investors that Elon Musk has not completely abandoned BTC.
Bitcoin Mining Council
Musk’s goal is that Bitcoin will consume less energy worldwide. To make this happen, Musk met with a number of North American Bitcoin miners last month to discuss the use of renewable energy. Subsequently, the miners established the “Bitcoin Mining Council” with the aim of providing Bitcoin miners with more transparency about their energy consumption. Under the watchful eye of Musk and Michael J. Saylor, among others, the Bitcoin miners have agreed to publish the data on their energy consumption. In addition, they agreed to publish their current and future renewable use.