Elon Musk’s has reversed his decision to accept bitcoin as a means of payment, over environmental concerns; a move that has been well-received by some of Tesla investors.
According to media reports, Tweets from Musk – the CEO of Tesla (one of the largest electric car manufacturers in the world) and the world’s second richest man, had helped drive some of the gains in bitcoin in recent months, but triggered a 17% slide in the value of the cryptocurrency when he said his company’s customers would no longer be able to use Bitcoin to buy its cars.
He noted that his decision was due to concern over the amount of energy it takes to “mine” Bitcoin – with much of it done in China using cheap, climate-destroying thermal coal.
He however added that Tesla could revisit the decision if the situation changes.
In reaction, more than half a dozen investors in the electric vehicle maker said they were happy with Musk’s decision on Bitcoin, noting that energy waste should be avoided.
According to a 2019 study, Bitcoin mining uses about the same amount of energy annually as the Netherlands did in 2019. Data from the University of Cambridge.
The International Energy Agency also showed that Bitcoin generated between 22 million and 22.9 million metric tons of carbon dioxide emissions a year.
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