ELON MUSK TWEET AND BITCOIN'S DROP

ELON MUSK TWEET AND BITCOIN'S DROP
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Elon Musk tweeted away and said that Tesla would stop buying Bitcoin. Bitcoin and a lot of cryptos dropped. What will happen to the crypto space? How safe is Bitcoin for the environment?
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#StockSmarts #Bitcoin #ElonMusk
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Bitcoin plunged as much as 17% after Elon Musk tweeted Tesla Inc had stopped accepting bitcoin to purchase its vehicles due to climate concerns on Thursday morning.

The price of the world's largest cryptocurrency dropped from around $54,819 to $45,700, its lowest since March 1, in just under two hours following the tweet.

Tesla's announcements earlier this year that it had bought $1.5 billion of bitcoin and that it would accept it as payment for cars has been one factor behind the digital tokens' surging price this year.

Musk added that the Tesla would not sell any bitcoin and would resume accepting bitcoin as soon as mining transitioned to more sustainable energy.

CEO and self-dubbed Technoking is back-peddling on the company’s stance about bitcoin and has suspended purchases of its electric vehicles with the cryptocurrency.

The change of stance, which was delivered via tweet, comes just weeks after Tesla CFO and dubbed “Master of Coin” Zach Kirkhorn said the company believes in the longevity of bitcoin, despite its volatility. The tweet from Musk sent the price of bitcoin down more than 4% (and falling). The price of bitcoin is down more than 7% for the day, although some of that decrease occurred prior to Musk’s tweet:

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.

Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at a great cost to the environment.

Tesla will not be selling any Bitcoin.