Tesla Halts Bitcoin Payments Over Environmental Concerns, Sending the Cryptocurrency to Session Lows

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Earlier this year, in what appeared to be a massive win for the crypto space, Tesla began accepting payments in Bitcoin. The move was heralded for legitimizing Bitcoin’s transactional utility beyond just a speculative asset class. But now, Tesla is backtracking its monumental decision. Tesla CEO Elon Musk took to Twitter to announce that his company would no longer accept payments in Bitcoin, citing concerns over “rapidly increasing use of fossil fuels for Bitcoin mining.” Tesla & Bitcoin pic.twitter.com/YSswJmVZhP — Elon Musk (@elonmusk) May 12, 2021 Bitcoin’s environmental concerns are certainly nothing new. Many have criticized the digital asset and its proof-of-work (POW) system for its hefty electrical consumption. Bitcoin’s surge in price has further incentivized miners to expand their operations, leading to annualized consumption levels surpassing that of small nations. According to University of Cambridge’s Bitcoin Electricity Consumption Index, Bitcoin miners around the world account for approximately 147 terawatts…

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