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Bitcoin rallies after Musk tweet

written by Bella Palmer
bitcoin

The value of bitcoin increased nearly 10% to $39,333.76 following his statement

Bitcoin rallied on Sunday as Tesla CEO Elon Musk tweeted that the company might start accepting the cryptocurrency again as a mode of payment when miners, who verify transactions, use more renewable energy.

When there’s confirmation of reasonable (50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions, Musk Tweeted on Sunday.

In February, Tesla revealed it had bought $1.5bn of Bitcoin and would accept it as a form of payment for cars. But the popular cryptocurrency’s production is at odds with the company’s mission toward a “zero-emission future”.

According to experts, Bitcoin's underlying network now requires nearly as much energy as the entire country of Argentina.

Tesla has suspended vehicle purchases using bitcoin, Musk had tweeted on May 12. 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 great cost to the environment, he continued. Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy.

Following his statement, the value of bitcoin increased nearly 10% to $39,333.76 on Monday, breaking above its 20-day moving average. The total market value of bitcoin is now $736,840,027,996.

Musk’s tweet was a response to an article based on remarks from Magda Wierzycka, head of cybersecurity from Syngia, who accused the Tesla CEO of “price manipulation” and selling a “big part” of his exposure in a radio interview last week.

This is inaccurate, Musk responded in his tweet. Tesla only sold 10% of holdings to confirm BTC could be liquidated easily without moving market.

Disclaimer:

The opinions expressed by our writers are their own and do not represent the views of UK Investment Guides. The information provided on UK Investment Guides is intended for informational purposes only. UK Investment Guides is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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