Elon Musk weighs in on previous criticisms to clear up his position on cryptocurrency at a recent conference.
Bitcoin has suffered greatly since mid-April when it reached an all-time high of over $64,000, dropping down to a sub $30,000 valuation. The dip came about due to two major crashes, one was the reversal of the decision for Tesla to accept Bitcoin as a payment method and the second was China’s decision to put an outright ban on Bitcoin mining. China was one of the largest contributors in this regard and this had a lasting effect on the price.
Elon Musk stated that he was never against cryptocurrency, but felt it was the right move for Tesla to distance itself from the market when environmental studies arose regarding power usage. The explanation as to the decision made has given rise to the market price, which could be the spark the crypto market needs.
What caused the price to climb?
The Tesla CEO remains a staunch supporter, despite comments made in the past regarding his position on Bitcoin. It seems his decision has convinced some major Bitcoin investors to purchase again.
It’s reported that Bitcoin whale accounts have come to life and purchased some 28,377 Bitcoins worth $841.85 million at the start of the week. The market has been fairly stagnant since the start of May, but the news has breathed life back into crypto and there is an underlying belief this may be the start of something.
A combination of Musk’s confirmation that his company, as well as himself personally, has investments in Bitcoin, Ethereum, and Dogecoin, and major investments have caused a stir. Moreover, Musk even stated that Tesla may reinstate the opportunity for customers to pay for Tesla automobiles using Bitcoin once again.
Why the change of heart?
The overwhelming issue was the fact energy was being used in abundance to complete transactions with Bitcoin. Many Bitcoin mining communities have switched to working with renewable energy. While the Proof of Work protocol used by Bitcoin remains the same, switching to renewable energy would mean that mining Bitcoin won’t leave a significant carbon footprint.
Nothing is confirmed yet, as Musk seems to get confirmation of the percentage of renewable energy usage before committing to Bitcoin once again. Musk is keen to see Bitcoin succeed—given that Tesla has invested some $1.5 billion into Bitcoin, it’s no surprise—and offering it to Tesla customers would certainly pave the way for a successful future.