Tesla will accept Bitcoin transactions again once its mining energy consumption is approximately 50 percent, as mentioned in a tweet by CEO Elon Musk.
Musk also clarified that Tesla only sold 10 percent of its BTC holdings to check if it was easily liquidated without “moving market”, while denying accusations of market manipulation.
Is Elon Manipulating the Market?
Musk has been mired in controversy in the past few weeks for reversing his positions on Bitcoin several times, which many in the crypto community have seen as a “pump and dump” strategy. Even gold bug and known Bitcoin detractor Peter Schiff has had plenty to say about it:
It’s easy to dump [Bitcoin] when you’re pumping up the price and suckering in buyers with market manipulation tweets. Bitcoin transactions were just a gimmick anyway to create the false impression that Bitcoin can function as either a viable medium of exchange or unit of account.
Peter Schiff, Twitter
Magda Wierzycka, CEO of financial services company Sygnia, has accused Musk of manipulating the market by engaging in various social media channels to cause price fluctuations for his own benefit.
The [Bitcoin] volatility we have seen is an unexpected function of what I would call market manipulation by Elon Musk. If that happen[ed] to a listed company, he would be investigated and severely sanctioned by the SEC.
Magda Wierzycka, interview on The Money Show
Bitcoin’s Environmental Debate
A month ago, Musk announced that Tesla would no longer accept Bitcoin transactions due to environmental concerns, which sparked a heated thread where crypto advocates like Michael Saylor, CEO of MicroStrategy, and investor Anthony Pompliano counter-argued his position.
While Bitcoin does consume a lot of energy, countries such as Iceland and Norway use otherwise wasted geothermal and hydroelectric energy to power their mining rigs. The most recent country to join that list is El Salvador, which is planning to harness its wasted geothermal energy to power rigs to mine BTC in what its president claims is a 100 percent clean manner.
The primary energy coming from renewables worldwide is low compared to BTC, which is 39-73 percent, according to Documenting Bitcoin.
Additionally, Michael Saylor hosted a meeting last month with Musk and North America’s top BTC miners with the aim of discussing ways to promote Bitcoin sustainability and energy transparency, leading to the creation of the Bitcoin Mining Council.
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