finance
monthly
Personal Finance. Money. Investing.
Contribute
Newsletter
Corporate

Elon Musk Causes Bitcoin Prices To Leap

Tesla will accept the digital currency once it moves towards more environmentally sustainable practices.

Posted: 14th June 2021 by
Finance Monthly
Share this article

Bitcoin saw an 11% price increase after Tesla CEO Elon Musk stated that his company will start accepting bitcoin once miners begin to use cleaner energy. Turning to Twitter, Musk said: “When there’s confirmation of reasonable (~50%) clean energy usage by miners with a positive future trend, Tesla will resume allowing Bitcoin transactions.”

Back in February, Tesla revealed that it had bought $1.5 billion of bitcoin and stated that it would accept the cryptocurrency on its cars. But, by last month, Tesla did a U-turn, announcing that its vehicles could no longer be purchased using the digital currency. Tesla said this was due to bitcoin’s increasing use of fossil fuels for its mining. The announcement resulted in the cryptocurrency crashing. 

Analysis by Cambridge University suggests bitcoin currently uses more electricity annually than the whole of Argentina. The mining process to create new units of bitcoin involves solving complex mathematical equations, which is reliant on high levels of computer processing power. Many critics believe that there is no such thing as “green bitcoin” as miners will always opt for the cheapest option to maximise their returns. However, others believe that institutional investors can lead bitcoin down a more environmentally sustainable path. Yves Bennaïm, the founder of non-profit Swiss think tank 2B4CH, has argued that as big investors like Tesla boost digital currency prices, there’ll be a greater incentive for investments in renewable energy sources. 

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram