Bitcoin Price Falls As Tesla Stops Accepting Bitcoin Payments
Tesla announced the acceptance of Bitcoin for payments in March
Elon Musk just recently stated that Tesla will not be accepting Bitcoin anymore. Bitcoin mining (and mining in general) has faced a lot of scrutiny from environmental experts, due to high electricity usage and the emissions associated with it.
Bitcoin price and Elon Musk
Like many other companies, Tesla announced the acceptance of Bitcoin for payments in March 2021. However, at that time, the company overlooked the fact that Bitcoin mining causes significant emissions. And that is something that goes against Tesla’s core values.
At that time, Musk tweeted, “You can now buy a Tesla with Bitcoin.” While many people were happy with the new convenience, environmentalists did not condone the idea. According to experts, the electricity consumption of Bitcoin mining per year is equivalent to that of electricity usage in all the Netherlands.
Considering these factors, the company will not accept Bitcoin payments anymore. Whether or not this recent decision by Tesla will further cause significant fluctuations in Bitcoin price is up for debate.
Within two hours of the latest announcement, the Bitcoin price fell to USD 45,700 that is roughly equivalent to AUD 59,225. This was its lowest since the 1st of March. Eventually, though, it stabilized at $49,910.
Earlier, Tesla revealed that the company has bought Bitcoin worth $2 billion (USD). However, just recently, the company sold 10% of the bitcoin that it held. It looks like Tesla has indeed churned out a bit of profit from selling their 10% holdings at the right Bitcoin price.
Considering the actions of Tesla, investment celebrities like Dave Portnoy describe it as “pump and dump”. Though, Tesla has all the right to buy and sell the cryptocurrency based on the available Bitcoin price.
Many speculators have suggested that Elon Musk is in just the right position to spend a big chunk of money on a cryptocurrency and to make its prices go up by tweeting about it. Such trends can be seen in the recent Bitcoin price fluctuations and Dogecoin (a coin that rose and plunged, hence completing a full cycle).
In other news, Anthony Davis just spent AUD 41.49 million on a luxurious Bel Air mansion featuring an Olympic-sized swimming pool and a full basketball court.
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