If there is one thing Tesla CEO Elon Musk can boast about, it is his notorious influence as an opinion leader, with a Twitter account that exceeds 55 million followers. In the past, Musk has been a vocal advocate for cryptocurrencies and has been one of the many catalysts for their markets.
In fact, in early February he communicated that Tesla had invested a total of $1.5 billion of the company’s cash to acquire bitcoin. As a curiosity, after the announcement, the cryptocurrency rose as much as 16% to an all-time high, at that time, located at $44,795.
However, it seems that recently Musk is becoming aware that the mining that involves bitcoin could conflict with his socially responsible company policy, with an energy vision focused on renewable energies.
As we recently pointed out, bitcoin mining has an environmental impact because a single bitcoin transaction uses approximately 707.6 kilowatt-hours of electricity, equivalent to the energy consumed by an average household for 24 days; studies indicate that the annual carbon emissions from the electricity generated to mine and process the cryptocurrency are equal to the amount emitted by New Zealand or Argentina.
Mined bitcoins tend to be especially harmful to the environment when mining takes place in coal-heavy regions of China or India.
Thus, last Wednesday, Musk tweeted that Tesla would no longer be accepting bitcoin as payment due to environmental concerns about its heavy energy use, a reversal of its policy of accepting the cryptocurrency.
Musk explicitly stated that “Tesla will not sell bitcoins,” and the company “intends to use it for transactions as mining moves to more sustainable energy. “He also said that Tesla would be considering” other cryptocurrencies “that use less than 1% of bitcoin’s energy consumption. As a result, the price of bitcoin fell about 15%.
Musk managed to push the bitcoin price down nearly $9,000 to just above $46,000. This was not the only cryptocurrency to be hit, but the movement was widespread. In total, his tweet has managed to erase $365 billion in market value from the total cryptocurrency. We also recommend reading about Casinos in Culture and Literature on our website.
And already placing us in Sunday ,Musk suggested that the electric vehicle manufacturer sold or could sell the rest of its holdings of bitcoins. As a result, bitcoin plunged to $42,100.
Musk’s influence on bitcoin has been such that the cryptocurrency’s share of the overall market capitalization fell below 40% on Monday for the first time since June 2018.