Elon Musk, Tesla's CEO, announced on Wednesday that the company would no longer allow Bitcoin for car purchases, citing long-standing environmental issues as the reason for the swift shift in the company's stance on the cryptocurrency.
The use of Bitcoin to purchase Tesla's electric vehicles revealed a contradiction between Musk's environmentalist reputation and his use of his celebrity and wealth as one of the world's wealthiest people to back cryptocurrencies.
"Cryptocurrency is a good concept on many ways, and we believe it has a bright future," he tweeted, "but it cannot come at the expense of the setting." After hours, Tesla's stock fell 1.25 percent. Tesla would keep its Bitcoin holdings, with the aim of using the cryptocurrency until mining shifts to more environmentally friendly energy sources, Musk said.
Bitcoin is developed when high-powered computers compete against each other to solve complex mathematical puzzles, a time-consuming process that currently relies heavily on electricity generated from fossil fuels, especially coal.
"Cryptocurrency is a good concept on many ways, and we believe it has a bright future," he tweeted, "but it cannot come at the expense of the setting." After hours, Tesla's stock fell 1.25 percent. Tesla would keep its Bitcoin holdings, with the aim of using the cryptocurrency until mining shifts to more environmentally friendly energy sources, Musk said.
Bitcoin is developed when high-powered computers compete against each other to solve complex mathematical puzzles, a time-consuming process that currently relies heavily on electricity generated from fossil fuels, especially coal.
