When it comes to cryptocurrency, the first choice the CEO of Tesla, Elon Musk has always been Bitcoin and one single tweet of him is enough to create a stir in the crypto market. The CEO has been vocal about Bitcoin and other digital currency and has encouraged and motivated other investors to invest in Bitcoins. Recently a tweet of Tesla’s CEO once again created unrest in the world of cryptocurrency, however, the tweet was not in the favour of Bitcoin and surprisingly his tweet has an adverse effect on the price of Bitcoin. On 13th May 2021, that is, on Thursday, Musk took over this Twitter account and tweeted regarding Bitcoin.
In that tweet, Musk was seen showing concern about the increasing carbon emission because of Bitcoin mining. Though he pointed out, he still believes that the first digital cryptocurrency has a highly promising future in the coming years but this cannot come by putting at stake the environment. The next part of the tweet was the main reason why the price of Bitcoin fall by 15% in a day and made a low of USD46,000. In last, Musk mentioned that the company, Tesla will not be trading any Bitcoin in the near future and the coins will be used solely for purpose transaction and they have also halted the purchases of the vehicle using bitcoin.
Now, Tesla is planning on exploring new cryptocurrencies that will use not more than 1% of the energy per transaction, unlike Bitcoin. Cryptocurrency mining is primarily the process of creating new coins and circulating them in the market, however, the amount of energy it consumes and the carbon emission release is a sheer concern of many experts. As per the reports, Bitcoin releases 36.95 megatons of carbon dioxide yearly which is equal to that of Slovakia and consumes 0.5% of the total world’s electricity.
The previous week, Musk was seen advising the investors that they should not use their personal saving in the cryptocurrency market and although it has promising future, people have to take caution while investing in it. Well unlike, the stock market, the crypto market is not regulated by any intermediaries and therefore although it is encrypted and safe, the risk is very high as compared to the market that is regulated under the boards and Financial institutions.
While the share price of Tesla was seen dropping by 4.42% and made a low of USD 589 each. Tesla was not the only company that experienced the price fall and as matter of fact, many listed companies that hold bitcoins in their balance sheet also witnessed the price drop. It will be interesting to know, which new cryptocurrency would be the first choice of Elon Musk after Bitcoin. Stay tuned with us, for more updates.
