Tesla ‘suspends’ Bitcoin car purchases citing environmental impact

A few weeks after Tesla started accepting Bitcoin as a bargaining chip for cars, Elon Musk revealed in a tweet that he would “suspend” the effort. According to the statement (Tesla does not appear to have a functioning press office), the company is “concerned about the increasing use of fossil fuels for mining and Bitcoin transactions.”

A study last year valued bitcoin mining used 7.46 GW of electricity on average, and the same study puts the number at present at 16.71 GW. This would represent 147.79 TWh on an annual basis.

Tesla went on to say that he “will not sell Bitcoin” (how much he may have already sold from parts purchased earlier this year for $ 1.5 billion are unclear) and said it will use those holdings for transactions whenever mining “switches to more sustainable energy.” It is also not clear why Tesla did not take these factors into account before announcing its use of Bitcoin, as they were already well known.

Without specifying a particular cryptocurrency, the company is looking at other options that it says use less than one percent of Bitcoin’s energy per transaction, likely using proof-of-stake blockchain technology at the place of proof of work. This would exclude Dogecoin, although it is not known if this policy will have an impact SpaceX cryptographic plans. Ethereum is a possibility as miners have discussed moving to a more energy efficient system and, as you might expect, the prices of the cryptocurrency have risen by over $ 200 in the last hour, while that Bitcoin’s value fell from around $ 2,000 to $ 52,795.53, according to Coinbase.


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