Elon Musk, the Technoking of Tesla Inc., announced that the electric vehicle maker is halting Bitcoin transactions, causing the digital currency to plummet.
Musk expressed concern about the “rapidly the use of fossil fuels for Bitcoin mining and transactions” in a tweet on Wednesday, but hinted that Tesla could consider other cryptocurrencies if they are less energy intensive. He also mentioned that the company would not divest any of its Bitcoin holdings.
The biggest cryptocurrency fell as much as 15% to just over $46,000 roughly ₱2,202,480.00 before recouping some of its losses. As of 2:03 p.m. in the Philippines on Thursday, it was down about 6% to $51,210 ₱2,451,934.80. Ether and Dogecoin, for example, both fell in value. Some cryptocurrency exchanges experienced brief outages as a result of the scramble to sell. In the last year, Bitcoin has increased by more than fivefold.
Musk’s action follows Tesla’s announcement in February that it had acquired $1.5 billion in Bitcoin and expected to receive it as payment. The announcement gave cryptocurrency more credibility as a means of payment and investment, particularly coming from a large S&P 500 company with a high-profile CEO who has a large following among retail investors and the general public.
Tesla’s website, which had a Bitcoin support page, stated that the token was the only cryptocurrency that the company accepted in the continental United States. Musk has often repeatedly tweeted about Dogecoin, a cryptocurrency that began as a joke in 2013 and about which he joked about being the “Dogefather” before and after his May 8 stint hosting “Saturday Night Live.” Do you want Tesla to accept Dogecoin?”
The inclusion of Bitcoin to Tesla’s balance sheet was the most obvious impetus for the digital currency’s rally this year. That day, Bitcoin gained 16 percent, the most in a single day after the Covid-19 triggered financial market turmoil in March 2020.
