Bitcoin Price: Elon Musk sparked a new spike when Tesla announced a new Bitcoin payment schedule.
After Elon Musk’s recent tweet about the world’s most popular cryptocurrency, the price of BITCOIN skyrocketed.
Today, the multibillionaire tweeted an update on Tesla’s future, including whether or not it will accept payments in the virtual currency once more. Mr. Musk stated that Tesla will accept Bitcoin as a form of payment once cryptocurrency mining becomes less harmful to the environment.
“Tesla will resume permitting bitcoin transactions when there is confirmation of reasonable (50 percent) renewable energy utilization by miners with a positive future trend,” he stated.
Bitcoin’s price soared more than $3,000 in just a few hours after the Tesla CEO’s remarks.
Before Mr Musk’s tweet, the price had been hovering at $35,000, but it began soaring within 30 minutes.
According to CoinDesk data, Bitcoin reached a high of $39,360 after almost three hours.
The majority of Bitcoin mining takes place in China, where vast volumes of coal are required to power the machines.
The amount of renewable energy used to power Bitcoin mining has yet to be determined.
According to one analysis, Bitcoin networks are fueled by roughly 40% renewable energy.
However, thanks to hydroelectric turbines in Southwest China, another study found that figure to be over 70%.
Tesla revealed in February that it has purchased $1.5 billion worth of Bitcoin.
Mr Musk and Tesla’s Chief Financial Officer, Zach Kirkhorn, sold 10% of their Bitcoin holdings for a profit of more than $100 million to test the market’s liquidity.
Mr Musk altered his plan to allow Tesla vehicle purchases using Bitcoin in a tweet in March.
“We are concerned about the rapidly expanding use of fossil fuels for Bitcoin mining and transactions, particularly coal, which emits the most pollutants of any fuel,” he stated.
“Cryptocurrency is a brilliant idea on many levels, and we believe it has a bright future ahead of it, but it must not come at the expense of the environment.”