Elon Musk, Chief Executive of Tesla (TSLA.O), tweeted Wednesday that the electric automaker is stopping paying cryptocurrency as payment for its vehicles
- Use of Bitcoin to buy Tesla’s electric vehicles highlighted a dichotomy
- Some Tesla investors have been critical about the way Bitcoin is “mined”
- Analysts said Musk’s about-face was inevitable
Citing the “increasing use of fossil fuels, especially coal” to mine and thereby to pay. Elon Musk . But his decision reveals more about his company than it does about Bitcoin.
Anyone somewhat familiar with the industry could have told Musk that the generation of bitcoins is absorbing a large amount.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
The latest figures from the study by the Center for Alternative Finance at the University of Cambridge show that miners are currently using 147 terawatt hours annually, which is roughly half the UK’s annual energy consumption.% Of their total consumption.
Yet the self-proclaimed “technoking” of a company seeking to accelerate the adoption of zero-emission energy, which is ignored or despised when it was decided to accept payments with bitcoin ins three months ago. Finance Officer and Master of Coin Zachary Kirkhorn also signed.
In Tesla’s first quarter earnings call, he stated that the company converted $ 1.5 billion into bitcoins for simple, low-risk returns and revealed a terrible complacency about the infamous daily volatility of two Bitcoin digits.
Tesla‘s oversight of his boss and largest shareholder remains as casual as it used to be, despite the best efforts of U.S. financial regulators. In the past, Elon Musk routinely over-promised and hit auto production numbers.
His cousin’s solar panel business in 2016. Two years later, he tweeted that he was considering taking the company private in a gross violation of securities laws and costing him a $ 20 million fine and the presidency .
such behavior.Their mix has changed a bit since then to include qualified outsiders like Hiro Mizuno, a former chief investment officer of the Government of Japan Pension Investment Fund.
It is clear, however, that the new setup did not fully control Musk. It’s a worrying sign. 13% on May 12 after Tesla CEO Elon Musk tweeted that the electric automaker would no longer accept it as payment for its vehicles. “We are concerned about the rapid increase in the use of fossil fuels for mining and bitcoin transactions, especially coal,” he said. He said – Tesla will lift its ban “once mining moves to more sustainable energy.”
Musk also wrote that the company is looking for other cryptocurrencies that use less energy. Tesla reported on Feb. 8 that it had purchased $ 1.5 billion worth of Bitcoin and is expected to start accepting it as payment in the near future.
The company then sold about a tenth of its stake to generate pre-tax profits of $ 101 million in the first quarter. In his May 12 tweet, Elon Musk also said that Tesla would not sell its remaining bitcoin.