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Crypto prices sink as Elon Musk and Tesla pull away from Bitcoin

Now what?

elon musk bitcoin twitter bio tesla
Image: KnowTechie

When Tesla announced it would start accepting Bitcoin for Tesla purchases, crypto enthusiasts really took that as a sign as that things were changing, that Bitcoin and other cryptocurrencies were hitting their turning point.

Now, that has all come crashing down, literally, with one tweet from Elon Musk announcing that Tesla would halt accepting Bitcoin immediately. The effects of the tweet rippled through more than Bitcoin, with Ethereum, Litecoin, and the many altcoins all experiencing drops.

Ironically, the tweet right before this one was a poll asking people if they wanted Tesla to accept Dogecoin.

As mentioned in the tweet, Tesla and Elon plan on hold onto the Bitcoin they have accumulated and they will begin using it for transactions again “as soon as mining transitions to more sustainable energy.” They will also be looking at other cryptocurrencies that use “<1%” of Bitcoin’s energy.

Here’s the thing though and what makes this announcement so odd, it’s not like Tesla and Elon were completely oblivious to the ridiculous energy costs of cryptocurrency. Yes, the energy costs have risen year over year, as shown by Elon himself, but it all just seems like strange timing.

Did they feel pressure from groups that oppose cryptocurrency or did they realize that accepting currency that can fluctuate drastically from day-to-day doesn’t make business sense? Who knows, but for the time being, Tesla is out of the Bitcoin game.

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