Few months back, Tesla added ability to purchase its vehicles as bitcoin. This was seen as a positive news for most of cryptocurrency world as its CEO, who is also world’s second richest person was basically promoting cryptocurrencies and blockchain to the world. Today, Tesla has announced that it has suspended vehicle purchases using bitcoin.
Tesla says it is concerned about rapid increase in use of fossil fuels for bitcoin mining and transactions. Tesla makes electric cars and this makes sense since mostly coal is used for electricity consumption.
Tesla said via its twitter account that it has not completely done though as it will be interested in accepting cryptocurrencies that use less than 1% of bitcoin’s energy for keeping its network secure and for processing transactions, which also requires continuous effort by miners.
This means in future, we see Tesla accepting Ethereum, once ETH V 2.0 rolls out. We also see Tesla accepting high liquidity coins that have strong and secure network. This includes Ripple (XRP), Stellar Lumens (XLM) and even Binance coin (BNB).
It is interesting to note that Elon Musk is great supporter of Dogecoin which just like bitcoin require continuous mining to process transactions and to keep network secure. This move by Tesla also implies that even though people want the company to accept Doge coin, it is unlikely to happen.
I am from Brisbane, Queensland and I hold post of Associate Editor at Cryptocoindaddy.