Elon Musk’s Tesla Suspends accepting Payments in Bitcoin, Considers Dogecoin Instead

Elon Musk, Bitcoin, Dogecoin
Elon Musk, Bitcoin, Dogecoin

Elon Musk the Chief Executive Office rat Tesla Inc (NASDAQ: TSLA) had sent Bitcoin to plunge to $46,000 on Thursday. The price plummets followed Musk’s announcement about suspending purchases using Bitcoin (BTC), few weeks after the car manufacturer started accepting BTC payments. Ether and Dogecoin prices have decreased following the news.

Musk announced on Twitter that he has concerns over the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions”. The billionaire and “Dogefather” said that the electric-car manufacturer might accept payment in other digital currencies. On a condition that they consume less energy to be mined. He added that Tesla doesn’t intend to sell any Bitcoin holdings.  

Consequently, the price of the largest cryptocurrency by both price and market cap plunged more than 15% to $46,000. Ether and Dogecoin also lost some value following the announcement alongside several other altcoins. Nonetheless, Bitcoin is still up more than fivefold in the past year.  

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Does Tesla consider accepting Dogecoin as a payment?

In February, Tesla invested $1.5 billion in Bitcoin and said that it will start accepting the digital token as a payment method. The announcement resulted in a price increase back then. In fact, it has contributed to pushing Bitcoin above a new all-time high record. The move had given crypto traders hope that Bitcoin might become an accepted payment method. 

Tesla’s decision to accept the digital token as a payment method was a good argument for traders. Several traders  saw that it gave legitimacy to the cryptocurrency market.

However, digital currency has created a polemic after the recent price increase.  Watchdogs and U.S. agencies said that Bitcoin is an illegal asset that terrorists and illegal drug dealers use on the dark web.

Additionally, Bitcoin mining consumes 66 times more electricity compared to 2015. The carbon emissions associated with it would likely make a polemic said Citigroup Inc in a report. 

That being said, Musk decided to ditch Bitcoin payments and is looking for another crypto to fill the gap. For instance, Musk or the “Dogefather” as he called himself during his stint hosting of the “Saturday Night Live” show on May 8 has tweeted on Tuesday, “Do you want Tesla to accept Doge?” Some traders suggested that Musk’s tweet might mean that he will start accepting payments in Dogecoin instead of Bitcoin. However, it’s unclear whether the company intends to do that.