Tesla Bitcoin car purchasing stopped due to environmental impact

Tesla will no longer accept the crytocurrency Bitcoin as payment for its cars, citing energy consumption and related environmental concerns.

“Tesla has suspended vehicle purchases using Bitcoin,” CEO Elon Musk announced. “We’re concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”

Bitcoin is ‘mined’ using powerful computers competing against one another to solve mathematical puzzles. This process uses extensive amounts of electricity, which is often produced by fossil fuels.

Tesla began accepting Bitcoin payments in March, but the EV company now won’t sell or use Bitcoin until the mining process becomes more sustainable.

“Cryptocurrency is a good idea on so many levels, and we believe it has a promising future, but this can’t come at great cost to the environment,” Musk said.

“We intend to use it [Bitcoin] for transactions as soon as mining transitions to more sustainable energy. We’re also looking at other cryptocurrencies that use less than 1% of Bitcoin’s energy/transaction.”

The announcement caused the value of Bitcoin to fall to its lowest point since March and comes just months after Tesla bought AUD$1.94 billionworth of the world’s most popular digital currency.

Around 70% of Bitcoin mining takes place in China, according to data from the University of Cambridge’s Centre for Alternative Finance. Fossil fuels are the primary source of electricity there until the rainy summer months, when sources are switched to hydro power.

Jack Warrick

" "

New 2022 Lexus NX arrives with firm’s first plug-in hybrid drivetrain

The new Lexus NX 350h features a standard hybrid set-up, while the NX 450h+ gets a plug-in hybrid powertrain capable of 65 kilometres of pure electric power

New 2022 Maserati Granturismo: all-electric GT previewed

Italian brand’s first fully electric model shows off new look in first official shots

McLaren Racing announces plans to enter Extreme E in 2022

Extreme E gains McLaren Racing - taking the number of teams to 10

Related articles