Bitcoin on the downside: Tesla no longer accepts cryptocurrencies

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Once again, Tesla CEO Elon Musk has caused a lot of movement in the crypto markets. This time, he sent the key currency Bitcoin down with a message on Twitter. The car manufacturer Tesla no longer accepts cryptocurrencies due to environmental concerns, which caused the Bitcoin to crash by around 15 percent.

Although Tesla invested the considerable sum of 1.33 billion US dollars in Bitcoin on February 8 and, according to its latest quarterly report, achieved a profit of more than 100 million US dollars just from the sale of 10 percent of its BTC shares could, the car manufacturer is now suddenly rowing back and no longer accepts crypto currencies when buying its vehicles. Company founder and CEO Elon Musk announced this just a few hours ago via the short message service Twitter. The reason: environmental concerns.

After Tesla of the previously unprecedented “rally” of the digital reserve currency, which has increased by more than 500 percent within the last 12 months Was able to increase value, benefited and accepted this as a means of payment for its cars, the company is now stepping on the brakes.

Cryptocurrencies are a good idea on many levels and we believe in a bright future, but that cannot be bad for the environment.

Elon Musk, CEO of Tesla

In the future, buyers will no longer be able to pay for the automaker's electric vehicles, such as the new Model S and Model X, with the digital assets.

Tesla stops trading in Bitcoins

Tesla intends to only accept Bitcoin as a means of payment again when the prospecting, the so-called mining, of the currency will take place exclusively with sustainable energy. According to Elon Musk, Tesla will no longer trade in Bitcoin as long as the energy balance of the cryptocurrency has not improved significantly.

According to Digiconomist's Bitcoin Energy Consumption Index, the energy demand of the cryptocurrency is currently in the order of magnitude of the whole of the Netherlands. The annual CO2 emissions correspond to those of Singapore.

Bitcoin briefly crashes by 15 percent

With his message on Twitter, Elon Musk has clearly driven Bitcoin into the red. While the reserve currency was quoted at around 55,000 US dollars shortly before, the asset plummeted to as much as 47,000 US dollars in just a few hours. A price loss of around 15 percent.

This also affected other Alt-Coins, such as Ethereum, the second largest crypto currency in terms of market capitalization, which fell from 4,400 US dollars to 3,500 US dollars (- 20 percent), and the Dogecoin (- 18 percent), which Elon Musk also repeatedly advertises prominently on Twitter.

The momentum on the major trading platforms such as Binance and Coinbase has recently turned, the price development of all relevant coins is currently clearly pointing downwards.

Update 05/14/2021 09:25 AM

Elon Musk sends Doge “to the moon” again

Elon Musk has the Doge, which is his favorite and currently the third largest crypto currency in terms of market capitalization, with only one sent a single tweet “to the moon” again, as the Tesla CEO himself repeatedly emphasizes.

As a direct result of the message from Elon Musk on the short message service Twitter, the price of the Dogecoin rose from 0.31 euros per coin more than 50 percent to 0.47 cents per coin.

The market capitalization of the asset increased by around 10 billion US dollars.

Many observers and experts have long criticized that Elon Musk, with its reach and its own investments, has such a great influence on the price development of crypto currencies takes.