Breaking: Tesla Inches Closer to Accepting Bitcoin Payments

September 16, 2023 3:20 pm Comments

Elon Musk’s promise to resume accepting Bitcoin payments for Tesla vehicles may soon be fulfilled as recent analysis suggests that Bitcoin mining now derives over 50% of its energy from sustainable sources.

Bloomberg analyst Jamie Coutts reported this development on September 14, highlighting that the shift towards renewable energy in Bitcoin mining has been accelerated by miners relocating from China after the country’s mining ban in 2021 and nations like El Salvador, Bhutan, Oman, and the United Arab Emirates investing in Bitcoin mining.

Elon Musk, the CEO of Tesla and SpaceX, initially announced in 2021 that Tesla would accept Bitcoin payments once the energy used by miners became approximately 50% sustainable with a positive trend.

This commitment came after Tesla had briefly accepted Bitcoin as payment for its electric vehicles before suspending the option due to concerns about the environmental impact of Bitcoin mining, primarily driven by fossil fuels.

TheStreet reported:

At the time, Musk indicated that Tesla would resume allowing bitcoin payments once bitcoin’s energy use was demonstrably “clean.”

“When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing bitcoin transactions,” he said.

While the exact mix of bitcoin’s energy sources is nearly impossible to measure, the latest analysis by Bloomberg Intelligence suggests the time has come for Musk and Tesla to make good on their commitment.

Musk’s announcement had significant implications for the cryptocurrency market as Tesla had purchased $1.5 billion worth of Bitcoin, sending its price to new highs of $44,200.

Tesla remains one of the largest public Bitcoin holders globally, with over 9,000 Bitcoins valued at approximately $259 million in its corporate treasury.

The debate over Bitcoin’s energy consumption has been ongoing, with critics arguing that it consumes excessive energy and contributes to environmental damage, particularly through fossil fuel usage.

Proponents, on the other hand, argue that Bitcoin can utilize renewable energy sources and that its energy consumption is justified as it secures a decentralized monetary network.

Now, according to Bloomberg Intelligence research, the mix of energy sources powering Bitcoin mining has surpassed the 50% sustainability threshold.

CoinTelegraph reports:

Musk — the CEO of Tesla, owner of X and founder of SpaceX — announced Tesla would stop accepting BTC payments in May 2021, citing the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions” at the time.

Since establishing a sustainable energy source threshold of 50% for when the firm would resume payments, Musk acknowledged that there was a positive trend toward green energy sources but hasn’t changed Tesla’s policy.

The Tesla CEO did not appear to have publicly announced any move to resume BTC payments.

At the time of publication, the price of Bitcoin was $26,572, having risen more than 2% in the last seven days.

This finding supports Musk’s previous commitment to reinstate Bitcoin payments for Tesla products once the energy use met this criterion.

The analysis also suggests that the Bitcoin mining industry is becoming a player in the push for decarbonization, contrary to accusations of unsustainable carbon footprints.

As of the article’s publication, Bitcoin’s price was $26,572, representing a more than 2% increase in the past week.

The potential resumption of Bitcoin payments by Tesla, coupled with the growing utilization of sustainable energy in Bitcoin mining, could have a positive impact on Bitcoin’s price and the wider cryptocurrency market.

Join the conversation!

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.