Why Tesla has suspended vehicle purchasing using Bitcoin

Tesla has suspended payments using Bitcoin, due to environmental concerns.

The world’s second-richest man announced on Twitter that Tesla will now suspend vehicle purchases using Bitcoin due to concerns over the increasing use of fossil fuels to mine Bitcoin transactions.

Bitcoin has been known to use more electricity than the entire country of Argentina, long becoming a target of environmental groups.

Bitcoin, the world’s biggest digital currency, fell more than 7% after the tweet and was trading at $52,669 .

Musk said Tesla would not sell any bitcoin and intends to use bitcoin 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,” Musk said.

Bitcoin’s annual energy consumption is comparable to some entire countries, such as Argentina and Ukraine. 

Bitcoin produces 36 megatons of carbon dioxide annually – which is comparable to New Zealand and it is estimated that in 30 years Bitcoin could alone increase global temperatures 2 degrees Celsius.

Many investors saw Tesla’s decision to accept Bitcoin as payment for vehicles as the first step towards legitimising the cryptocurrency.

Bitcoin has long been the target of environmental groups

Bitcoin’s annual energy consumption is comparable to some entire countries, like Argentina and Ukraine.

The crypto-currency produces 36 megatons of carbon dioxide annually – which is comparable to New Zealand.

ticker’s crypto expert Stephan Livera joined us a little earlier and says the decision by Tesla is contradictory.

It is estimated that in 30 years Bitcoin could increase global temperatures by 2 degrees Celsius.

China leads the world for the most bitcoin mining.

Microsoft founder Bill Gates, has also weighed in on the debate… he says bitcoin uses more electricity per transaction than any other method known to humanity.