There was little change in the cryptocurrency markets this week after Tesla founder and chief executive Elon Musk suddenly announced that the company would no longer accept bitcoin payments, citing environmental concerns.
“Cryptocurrency is a good idea on many levels, and we believe it has a promising future, but it may not come at a great cost to the environment,” Musk wrote. “[…] We are concerned about the rapidly increasing use of fossil fuels for bitcoin mining and transactions, particularly coal, which has the worst emissions of any fuel. “
iFX EXPO Dubai Look forward to meeting you in May 2021 – Making it Happen!
Tesla and Bitcoin pic.twitter.com/YSswJmVZhP
– Elon Musk (@elonmusk) 12 May 2021
At the end of the announcement, Musk also mentioned that Tesla is “looking at other cryptocurrencies that use <1% of bitcoin's energy / transactions." Several hours later, he tweeted another: "To be clear, I strongly believe in crypto, but it may not lead to a huge increase in fossil fuel use, especially coal."
To be clear, I strongly believe in crypto, but it may not increase the use of fossil fuels, especially coal.
– Elon Musk (@elonmusk) May 13, 2021
The announcement set off sales shocks in the crypto markets. As a clear theme of the message, bitcoin seems to have been the most affected.
Less than 24 hours after the tweet was posted, the bitcoin price fell nearly 17 percent, dropping from $ 58K to $ 49K. While the price of BTC has stabilized, the asset has not managed to fully recover its losses; As of press time, the BTC was just below the $ 50K mark.
Tesla’s rejection of BTC may reinforce BTC’s public perception as an energy-glutonous beast
While Musk clarified that Tesla would not sell any of the 38,300 BTC on its balance sheet, the announcement offered a clear tonal change in Tesla’s attitude towards cryptocurrency.
While BTC is increasingly understood as a stock of value or a “hedge against inflation” asset, bitcoin cannot shake its reputation as an energy-hungry, carbon-intensive network.
Just last month, the New York Times published an excerpt stating, “[Bitcoin] It has such a low share of the world’s total transactions, yet the entire countries have a carbon footprint. “Additionally, Ars Technica reported last month that a private equity firm revived BTC’s deteriorating coal-fuel power plant for the mine ; The Washington Post recently reported that the Iranian government accused Bitcoin miners of a major power outage.
Although some factors, including the use of renewable energy in bitcoin mining, have put the facts about bitcoin’s carbon footprint up for debate, bitcoin is still seen as problematic by the general public. Therefore, it seems quite logical that Tesla, which is famous for producing low-emission, “sexy” electric cars, will step back from BTC to maintain an image of sustainability.
Nevertheless, the bitcoin community pushed back Tesla’s assertion that the bitcoin network’s fossil fuel consumption was “growing rapidly.”
The trend of energy use in the last few months is crazy https://t.co/E6o9s87trw pic.twitter.com/bmv9wotwKe
– Elon Musk (@elonmusk) May 13, 2021
“Elon … you realize that 75% of miners use renewable energy, don’t you? This energy story has been repeatedly dismissed,” wrote Anthony Pompliano, founder of Pompe Investments, in response to the announcement Indeed, last month, Arc Investments claimed that 76 percent of bitcoin miners use renewable energy. To date, there has been no comprehensive scientific study to measure the carbon footprint of the bitcoin network.
But, just as Tesla accepted bitcoin earlier this year, and perhaps prompted other corporations to get in the fold, could its move away from BTC lead other corporations to some distance from bitcoin?
There doesn’t seem to be much evidence for this, at least, not yet. However, if Tesla adopts ‘other cryptocurrencies’, which have lower carbon consumption rates than BTC, crypto-curious companies and institutions can follow in its footsteps.
Will Tesla accept Dogcoin (DOGE)?
Indeed, Elon Musk’s announcement that Tesla was “exploring other cryptocurrencies that use <1% of bitcoin's energy / transactions" has led many in the crypto community to guess which coins May be in the lineup.
The crypto industry is pure chaos right now.
– Elon can’t make up his mind
– Saylor is beating bitcoin
– Coinbase Listing Doge
– pumping every shitcoin
– Mainstream media confused
– Central bank non-stop printing
– Cash Institutions
– Pompeo (@APompliano) May 13, 2021
Given Elon Musk’s clear fixation on Dogecoin (DOGE), coinage may seem like the most obvious option. Musk published a Twitter poll on Wednesday asking the public whether Tesla should start accepting Doge as payment; About 80 percent of the respondents said ‘yes’.
Do you want Tesla to accept Doge?
– Elon Musk (@elonmusk) May 11, 2021
Musk tweeted on Friday that he is “working with Doge developers to improve system transaction efficiency. Potentially promising.” DOGE’s price appeared to be bouncing in the wake of the tweet. In the 24 hours before press time, DOGE was up about 35 percent.
However, some crypto community members are growing skeptical about Musk’s intentions with DogCoin. Name these developers. The world is very curious, ”says author, Preston Peish Tweeted in response. “… or is this another ‘Developers Secure’ tweet?”
Weentar is going to encourage social media activity. Go to article >>
The crypto market analyst, Michael van de Poppe, wrote, “Can you just stop tweeting?”
The price of Cardano (ADA) reached a new historical high after Elon was asked by the Cardano Foundation to “inspire its people to talk to our people”.
So far, analysts are following the money. When the price of bitcoin crashed, many other top-10 cryptocurrency prices fell on orders of five to ten percent. However, the ADA, the original token of the Cardano network, has hit a new all-time high, leading some to speculate that the ADA may be a strong contender for Tesla payments.
Indeed, after Musk posted his announcement, the Cardano Foundation tagged him in a tweet, asking him to “talk to our people to our people.”
Cardano x Tesla: a clear match? 4
– Cardano Foundation (@CardanoStiftung) May 13, 2021
Since then, ADA supporters have jumped on the # Tesla4ADA movement like crazy.
Trend this hashtag -> # Tesla4Ada
– Rick McCracken DIGI (@RichardMcCrackn) May 13, 2021
However, other fans of the ADA would like the cryptocurrency network to keep its distance from Elon Musk. A Twitter user with the handle @ CryptoNelson17 wrote that: “While I Love [Tesla to accept ADA] From a utility-perspective, I think @elonmusk is a bit unstable and it could hurt $ ADA in any way, ”he wrote.
“I mean it doesn’t have to be ‘buy Teslas now with $ BTC’ – you’re telling me that Elon didn’t know it wasn’t green? He’s a kid at a candy store, playing (sic) . “
I mean ‘don’t buy Teslas with $ BTC now’ – you’re telling me that Elon didn’t know it wasn’t green? He is a kid in a candy store, playing
– Tyler Nelson (@ CryptoNelson17) May 13, 2021
Could XRP be Tesla’s future payment token?
The XRP community is also vying to get Elon’s attention. While Ripple Labs seems to be silent on this issue, XRP holders were quick to point out that Ripple Networks claims to have the lowest carbon footprints of any blockchain on the market.
– Razvan Stanciu (@ RazvanStanciu9) May 13, 2021
Crypto analyst Mr. Whale (@cryptowhale) tweeted, “Elon Musk says Tesla is looking for cryptocurrencies that use less than 1% of bitcoin’s energy consumption.” The good thing is that $ XRP uses less than 0.001% of bitcoin’s energy and only costs $ 0.0000136 per transaction. “
Elon Musk says that Tesla is looking for cryptocurrencies that use less than 1% of bitcoin’s energy consumption.
– Mr. Whale (@CryptoWhale) May 13, 2021
Gokshtin Media founder David Gokshtein also Tweeted That he could “see Elon taking $ XRP as payment for Tesla products.”
I could see elon too $ Xrp As payment for Tesla products.
– David Gokshin (@davidgokhshtein) May 13, 2021
However, like the DOGE and ADA communities, some XRP users were not very happy with Elon Musk’s idea of publicly adopting XRP.
Twitter user @Beat_Diem wrote, “I really don’t want Elon inside XRP, I don’t want a manipulation market.”
“We need to adopt. With Bitcoin it is so easy for Tesla to use BitPay or any other crypto debit card, even if Elon does not want it. This is really stupid. (Sic)
What are your thoughts on Tesla’s decision to stop accepting BTC payments? Which cryptocurrency could Tesla accept instead? Let us know in the comments below.