Bitcoin price crashes as Tesla suspends payments over climate … Thu, 13 May 2021 08:00:00 +0100-BITCOIN price has continued to fall in recent hours by up to 13 percent, after Tesla CEO Elon Musk tweeted that the car manufacturer will no longer be accepting …
Bitcoin has seen a sudden drop in value over the past few hours, with a single Bitcoin down by more than $7,000 (£5,000). The drop was largely linked to Elon Musk's tweet confirming that Tesla won't be accepting the cryptocurrency as payment any longer.
Bitcoin is a type of cryptocurrency that was first invented in 2008.
It's a decentralised digital currency, which means it doesn't need a central bank to oversee transfers.
Bitcoins were created as a reward for digital mining – a type of record-keeping that uses large amounts of computer processing power.
But mining has a relatively large carbon footprint as it uses a lot of electricity.
Bitcoin price: Crypto value falls 13% after Elon Musk's Tesla tweet – should you buy Bitcoin? (Image: GETTY Images/Twitter (@elonmusk))
Musk tweeted that Tesla wouldn't be using Bitcoin as a type of payment anymore, owing to climate change fears.
“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,” he said.
“Cryptocurrency is a good idea… 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.”
After Tesla's announcement, Bitcoin saw a sudden drop in value.
Shortly before Musk tweeted, Bitcoin was trading at around $54,602.
But just over two hours later, the price had fallen to $47,720.
It was the lowest price for Bitcoin since April 25, when it hit a new low of $47,273.
But, the crypto has still seen a 75 percent rise in value since January, and this time last year was worth less than $10,000.
Bitcoin price: Bitcoin is highly volatile and there's no guarantee of success (Image: GETTY Images)
Bitcoin price: Crypto plummets 13% after Elon Musk Tesla tweet … Thu, 13 May 2021 08:00:00 +0100-In a statement posted to Twitter overnight, the electric car maker's billionaire boss Elon Musk said that the firm was “concerned about rapidly…
In a statement posted to Twitter overnight, the electric car maker's billionaire boss Elon Musk said that the firm was “concerned about rapidly increasing use of fossil fuels for Bitcoin mining transactions”
The Bitcoin price tumbled by more than 10% on Thursday after Tesla Inc (NASDAQ:TSLA) boss Elon Musk said the electric car maker will stop accepting payments in the cryptocurrency amid concerns over its impact on global carbon emissions.
In a statement posted to Twitter overnight, Musk said while the firm thought cryptocurrency was “a good idea on many levels”, it was “concerned about rapidly increasing use of fossil fuels for Bitcoin mining transactions, especially coal”.
As a result, Musk said Tesla will not be selling any of its current Bitcoin holdings and will only begin using it for transactions when mining the digital currency transitioned to “more sustainable energy”.
He added that the company is also looking at other cryptos that use less than 1% of Bitcoin’s energy per transaction.
The news sent the price of Bitcoin down around 11% over the last 24 hours to a one-month low of US$50,806 in early trading in London.
However, while crypto investors are licking their wounds, Tesla’s move is a significant win for critics of Bitcoin’s energy usage, with the amount of power needed to mine the crypto surpassing several countries.
“Bitcoin backers will be wondering where this leaves the future of the cryptocurrency. Environmental matters are an incredibly sensitive subject right now, and Tesla’s move might serve as a wake-up call to businesses and consumers using Bitcoin, who hadn’t hitherto considered its carbon footprint”, said AJ Bell analyst Laith Khalaf.
“Tesla’s decision certainly puts pressure on other big companies who accept Bitcoin to review their practices, because boardrooms will now be wary about getting it in the ear from ESG investors on the shareholder register. This highlights that the long-term adoption of cryptocurrencies by businesses, consumers and investors is still highly uncertain, as Tesla itself has pointed out”, the analyst added.
Bitcoin’s plunge also hit several other mainstream cryptos on the market n Thursday, with Ethereum down 7.8% at US$3,968 while meme-inspired crypto and Musk favourite Dogecoin also dropping 14.7% to US$0.43.
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– May 13, 2021
Bitcoin price Crypto plummets 13 after Elon Musk Tesla tweet