- Bitcoin Price falls after Musk tweet.
- Elon Musk recently said Tesla will no longer accept Bitcoin for car purchases.
- The billionaire’s market-moving tweets aren’t necessarily against the rules.
Bitcoin Price falls about 9% on Sunday, after Tesla CEO Elon Musk, posted on Twitter, that suggested that the electric vehicle company sold its holdings of the cryptocurrency.
The price of the world’s largest cryptocurrency slipped from almost 54,819 to $45,700, its lowest since March 1, within a span of less than two hours following the tweet by Tesla CEO Elon Musk, saying the company had stopped accepting bitcoin to purchase its vehicles citing climate concerns.
On the other hand, Ether, the second-largest cryptocurrency, followed a similar pattern, also dropping 14 percent to touch a low of $3,550, before jumping back to about $3,965.
“We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Musk wrote.
Rise and Fall of Bitcoins:
In February, Tesla announced it had bought $1.5 billion of bitcoin and intended to start accepting it as payment for cars. The cryptocurrency rises sharply after the announcement by World’s richest men.
Two months later in May, Musk announced that Tesla would stop accepting bitcoin due to fears that its “insane” energy use is hurting the planet.
The reason behind Musk Decision:
Bitcoin mining is consuming 66 times more electricity than it did back in late 2015, and the carbon emissions associated with it will likely face increasing scrutiny, according to a recent Citigroup Inc. report.
Musk reversed his stance due to criticism from some environmentalists and investors. The digital currency is processed through the high-powered computers that compete against other machines to solve complex mathematical puzzles. This energy-intensive process currently often depends on electricity generated with fossil fuels, particularly coal.
Elon Musk reply indicates Tesla has sold off its Bitcoin:
An unverified Twitter account @CryptoWhale Tweeted:
“Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings. With the amount of hate @elonmusk is getting, I wouldn’t blame him”.
Musk replied “indeed” without specifying whether Tesla had sold off its Bitcoin holdings or that he simply agreed with the sentiment that he faced criticism.
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