As announced recently by Elon Musk in a conference last Wednesday, Electric-car maker Tesla Inc. (TSLA.O) is starting to accept Bitcoin as payment after conducting due diligence on the availability of renewable resources that are needed to mine the currency. While Tesla’s shares were down at 0.8% at $655.30 in extended trading, Bitcoin was up at 8% at $32.160.16 with others with a peak value of 11.6% at $1993.36.
At the B-Word conference, in May, Elon Musk had announced that Tesla would stop accepting Bitcoin for car purchases, less than two months after the company started to accept the world’s biggest digital currency for payment. He also added that he wanted a little more due diligence to assure the percentage of usage of these non-exhaustible resources most likely over 50%, as given on Twitter. The trend towards rising that number is most likely to happen and if that happens Tesla would begin accepting Bitcoin again.
There have been virtual currency representation of Bitcoin in front of the Tesla logo in the illustration taken on February 9, 2021. So finally during last week, the acceptance to use Bitcoin started in Tesla Inc. A vast scale of dichotomy has been marked by the use of Bitcoin to buy Tesla’s electric vehicles and between Musk’s environmentalist reputation and use of his popularity and stature as one of the eminent personalities to back cryptocurrencies. Some critical remarks have been generated from some Tesla investors along with environmentalists regarding the process Bitcoin is “mined” using wide quality of electricity obtained by burning of fossil fuels.
Yet, attempts to use renewable resources to mitigate their effects on the surroundings are being taken up by several digital currency miners. So, it is likely to be understood that Tesla under Elon Musk is highly making attempts to steer up its mission to accelerate the advent of sustainable energy. Musk has mentioned that he doesn’t want to build a company that does only that but also aims to not do appropriate diligence on the energy usage of Bitcoin.
Apart from the Bitcoin owned by Tesla and SpaceX, Musk specifically added that he owned dogecoin, bitcoin and ethereum. Musk has always believed in the slow but steady success of Bitcoin under Tesla, rather than pumping to get a high price in selling. Musk had previously sent the rate of Bitcoin into free-fall because he was aware that the so-called mining of the coins was likely to use a lot of fossil fuel-generated electricity. Over the last year, Tesla has been infusing itself deeper into the cryptocurrency world at various stages.
Earlier in 2021, Tesla invested about $1.5 billion in Bitcoin. After then the automaker started accepting payment of new vehicles in cryptocurrency. Many Tesla community members showed concerns about the environmental impact when Tesla first announced its Bitcoin investment. The company has surely noted concerns over the energy needs of the Bitcoin network. So when the company holders noted that they were not selling their stake in Bitcoin, they planned to resume taking Bitcoin payments with its network showing a great blend of renewable energy. So Bitcoin investment is likely to happen at a greater rate when it becomes more eco-friendly.
Bitcoin’s global mining network leans on renewable resources but getting insights on the spread of these resources is difficult and makes the grid more decentralized. However, it is going to take some unprecedented transparency from the global network to help Musk get a starting point out to judge Bitcoin’s current or upcoming “eco-friendliness”. Last month, Elon tweeted that with confirmation of reasonable clean energy usage by miners with better future trends, Tesla will for sure resume the use of these cryptocurrencies. Tesla will always support moving Bitcoin miners towards renewables. Musk’s comments highlight the exercising of his powers over the cryptocurrency market. The price of Bitcoins rebounded faster this billionaire founded revealed more details about him and his organization holdings at the virtual panel. It is to be clearly understood that long-term renewable resources don’t develop overnight but if the company stays conscious and determined then real efforts by the mining community to shift toward renewables can be slowly supported and undertaken, according to Musk.