Tesla Inc., an American electric vehicle and clean energy company, on Wednesday announced it has stopped accepting Bitcoin as payment for its vehicle.
The company’s Chief Executive Officer, Elon Musk, disclosed this in a tweet.
Musk said “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 a great cost to the environment.”
The billionaire further stated that Tesla will not be selling its holding of Bitcoin until mining transitions to more sustainable energy.
He said “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.”
Bitcoin plunged by 17 percent from $54,800 per coin to as low as $46.294 per coin before moderating to $50.656 per coin while Ethereum, XRP, and Dogecoin declined by 9.09 percent, 10.73 percent and 10.28 percent, respectively.
In March 2021, Elon Musk announced that customers in the United States can now purchase Tesla vehicles with Bitcoin.
This was despite Bill Gates, Janet Yellen and others complained about Bitcoin energy consumption and its impact on the globe going forward.
While Musk seems to have downplayed their concerns in March, the Billionaire is now pushing for exactly the same thing after accumulating enough Bitcoin. A move now criticized by millions of cryptocurrency lovers globally.
Nic Carter, founding partner at Castle Island Ventures, and a leading voice among defenders of Bitcoin’s energy use, said Elon Musk should have done his due diligence before accepting Bitcoin.
“Surely he would have done his diligence prior to accepting Bitcoin?’ Carter said. “Very odd and confusing to see this quick reversal.”
Others started pushing Dogecoin as a replacement for Bitcoin while some suggested Tether on the Tron network has the lowest energy consumption presently and it is a stable coin.
Confident Analyst Says $288k BTC Still In Play
Bitcoin (BTC) can still hit an average price of $288,000 in the next three years, confident analyst @PlanB has said after BTC/USD shed 7 percent on June 12.
In a tweet on Saturday, the creator of the popular stock-to-flow Bitcoin price models cast aside doubts over the Bitcoin bull run continuing.
Alongside a chart describing Bitcoin as “going for gold,” PlanB was characteristically cool about Bitcoin’s recent progress despite a failure to break out above $40,000.
As Cointelegraph reported, concerns from traders and external sources alike have been mounting over the past week, these centering on a possible deeper BTC price correction.
“$288K still in play,” PlanB retorted.
“It would really surprise me if bitcoin would not touch the black S2FX model line this phase. Regardless of the current volatility.”
Such “surprise” would provide a serious test for the model, which has so far charted Bitcoin’s growth with unique precision.
The $288,000 price tag refers to an average value called for by the Stock-to-Flow Cross-Asset (S2FX) iteration, while a previous version requires a more modest $100,000 average. Both are based on the current halving cycle, a four-year period between block subsidy halvings due to end in April 2024.
Earlier, Cointelegraph noted that spot price deviation from S2F readings has reached levels that normally see a rebound and a new all-time high.
In additional comments, PlanB noted that 2021 really did fit with behavior from other all-time high years — 2013 and 2017 — further quashing suggestions that Bitcoin is facing serious problems.
“Deviation is not much different from 2013 (S2F ~10) or 2017 (S2F ~25), just the usual inertia after a halving,” he told Twitter users. Bitcoin has a “bullish ace up its sleeve”
Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, has added to the upbeat mood over the power of the halvings.
On Saturday, he described Bitcoin’s declining supply as a “bullish ace” for the largest cryptocurrency which can naturally boost the price.
“Bitcoin $100,000 Has Bullish Ace Up Its Sleeve: Declining Supply — This year follows a cut in Bitcoin supply, making the price more likely to appreciate if past patterns hold,” he summarized.
His bullishness comes as Taproot, described as the most important Bitcoin network upgrade in four years, is locked in for activation by nodes.
Due in November, Taproot provides a host of improvements that will, among other things, make it cheaper to use some key features such as multi-signature transactions.
Bitcoin Mining Council Confirms Elon Musk Has No Role in The Council
The Bitcoin Mining Council made a formal debut on Thursday as the debate regarding the environmental impact of the digital asset intensifies.
The Bitcoin Mining Council describes itself as a “voluntary and open forum of Bitcoin miners committed to the network and its core principles.” Its mandate is to promote transparency, endorse good practices, and foster Bitcoin education according to the official website.
MicroStrategy CEO Michael Saylor is one of the founding members, who posted a call to arms on his Twitter feed on Thursday.
“The Bitcoin Mining Council is a voluntary and open forum of Bitcoin miners committed to the network and its core principles. We promote transparency, share best practices, and educate the public on the benefits of #Bitcoin and Bitcoin mining”.— Michael Saylor (@michael_saylor) June 10, 2021
The organization consists of a group of energy-conscious North American Bitcoin mining companies. It was first suggested by Elon Musk in a tweet in late May, but he has since clarified that he will have no role at the council. The site goes out of its way to underline this point:
“Elon Musk has no role at the BMC. The extent of his involvement was joining an educational call with a group of North American companies to discuss Bitcoin mining.”
In addition to MicroStrategy, founding members include investment management firm Galaxy Digital, blockchain mining company Argo, blockchain technology firm Hive and Bitcoin mining company Riot. The founding members will cover any running costs and invite any Bitcoin miner from anywhere around the world to join. It stated that any miner joining should:
“Believe that transparency around energy usage for mining is important and agree to voluntarily share their energy mix and hash rate size for research and educational purposes.”
The BMC will hold quarterly meetings in order to analyze mining trends, partner with industry researchers, gather data for educational purposes, and foster growth in the North American BTC mining industry.
The group confirmed that it is completely independent of the Bitcoin network itself and has no intentions to disrupt its decentralization.
“We don’t seek to change the decentralized nature of Bitcoin or its core principles, but rather are working to raise awareness about Bitcoin and Bitcoin mining.”
It added that the council believes that Bitcoin’s energy usage is a feature, not a bug, providing tremendous network security. The energy consumption of global mining operations has come under the spotlight recently in the wake of Musk’s comments regarding its environmental impact.
IMF Voices Concerns Over El Salvador Adoption of Bitcoin As A Legal Tender
The International Monetary Fund (IMF) raised a number of economic and legal concerns Thursday regarding El Salvador making bitcoin a legal tender, with equal footing with the U.S. dollar.
With the recent approval of the “Bitcoin Law” proposed by President Nayib Bukele, El Salvador has become the first country in the world to adopt bitcoin as legal tender.
Gerry Rice, an IMF spokesman, said during a scheduled press briefing in Washington:
“Adoption of bitcoin as legal tender raises a number of macroeconomic, financial, and legal issues that require very careful analysis so we are following developments closely and will continue our consultation with authorities. Crypto assets can pose significant risks and effective regulatory measures are very important when dealing with them.”
The spokesperson added that the IMF will meet with President Bukele later on Thursday to discuss the recently passed bitcoin law. El Salvador has been in discussions with the IMF seeking a near $1 billion loan.
Following the adoption of the bill to make bitcoin legal tender, El Salvador announced that it will be mining bitcoin using energy from volcanoes. “I’ve just instructed the president of La Geo (our state-owned geothermal electric company) to put up a plan to offer facilities for bitcoin mining with very cheap, 100 percent clean, 100 percent renewable, 0 emissions energy from our volcanos. This is going to evolve fast,” said President Bukele.
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