Bitcoin, Ethereum, and crypto market turns red following Elon Musk Tweet

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Bitcoin,Ethereum, and crypto market turns red following Elon Musk Tweet

Bitcoin dropped by double figures within an hour following reports that Tesla had suspended payments in BTC. Elon Musk posted a statement on Twitter in the early hours of today stating that leading car manufacturer Tesla had suspended payments in BTC for their vehicles. According to Musk, the increased use of fossil fuel in Bitcoin mining and transactions was the reason for the decision.

Musk further stated that although cryptocurrencies had a bright future, they should not come at a great loss to the environment. He also hinted that Tesla was looking at other coins that used a fraction of the energy costs of Bitcoin. 

Crypto Market turns red

As expected, the crypto market dipped within minutes of the announcement, with a massive selloff occurring. Bitcoin sipped by double figures within an hour of the Tweet with the leading coin falling below $50k temporarily. 

Other coins were not left behind. Leading altcoin Ethereum is also down by about 5% at the time of publication. The crypto market is red, and this news appears to be the reason behind the slump. 

Is Tesla right about Bitcoin environmental concerns

The information from Tesla contradicts research made into the mining of cryptocurrency and Bitcoins. The University of Cambridge researched in October 2020 and discovered that less than 40% of the total power used to mine BTC comes from fossil fuels. 

Miners have in recent years turned to alternative renewable sources like Hydro and Wind energy. At the time of writing, Bitcoin is valued at $50,000, and it remains to be seen which currency will replace BTC on Tesla. Only time will tell.