Bitcoin and Tesla Payment Timeline
In March of 2021, CEO and founder of Tesla Elon Musk announced on Twitter that the EV company would be accepting the famous cryptocurrency Bitcoin as payment for its electric cars and products. This was a massive moment for cryptocurrency as it was seen as the first major business to recognize Bitcoin as a legitimate form of currency. One of the largest issues with cryptocurrency is the lack of buying power it holds on actual commodities outside of certain online purchases. By accepting Bitcoin, an EV company of Tesla’s size could have started a chain reaction for Bitcoin and cryptocurrency as a whole.
However, after less than two months of operations, Musk made another bombshell announcement on Twitter stating that the company had reversed its initial decision and Bitcoin would no longer be accepted moving forward. The news of this announcement sent shockwaves across the cryptocurrency world, with Bitcoin dropping in value by over 10%. The reasons given for the massive reversal stemmed from the large environmental impact that Bitcoin has, given the large amounts of energy it takes to mine and trade the cryptocurrency online.
In the statement Musk posted on Twitter, the leader of the EV business said, “Tesla has suspended vehicle purchases using Bitcoin. 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 continued on, adding, “Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment.”
Possible Future for Tesla and Cryptocurrency
While the door seems to be shut between Tesla and Bitcoin for now, Musk did say that the EV business was looking for other cryptocurrencies to accept as payment. However, that is with the added caveat that they must use less than 1% of the energy Bitcoin does per transaction.
Many analysts have already begun speculating about possible replacements for the EV company, with former meme cryptocurrency turned valued asset Dogecoin being at the top of many lists. Dogecoin is currently worth over $0.41 per coin and only consumes 0.12 kWh per transaction. In comparison to the whopping 707 kWh that Bitcoin uses, Dogecoin could be a far more energy-efficient replacement that still has massive growth potential.
Many other names are also on the list of potential cryptocurrencies for the business to accept, including XRP, Litecoin, and Chia Network. While the company has made no official statement on what cryptocurrency they may go into business with, the vocal support of Dogecoin that Musk has shown online may make the meme a dream for many early adopters.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.