Bitcoin value moves past $30k after Elon Musk says Tesla 'most likely' to accept it again

As Tesla CEO Elon Musk announced that his company is “most likely” to start accepting Bitcoin as payment again, the digital currency’s value jumped past $30,000. Musk’s recent remark about accepting Bitcoin as a credible payment method came after Tesla, in May, announced that it would no longer accept the cryptocurrency for purchases of its electric car, citing concerns over the environmental impact of Bitcoin mining which utilises massive amounts of electricity. However, during a B Word cryptocurrency conference, Musk said, “Most likely the answer is that Tesla would resume accepting Bitcoin.”

Tesla CEO also said that he had been investigating fossil fuel usage in Bitcoin mining. “I wanted a little bit more due diligence to confirm that the percentage of renewable energy usage is most likely at or above 50% and that there is a trend towards increasing that number, and if so Tesla would resume accepting Bitcoin," he said. Tesla had discontinued accepting Bitcoin as payment just two months after the company actually started taking the world’s biggest digital currency.

Tesla investors, activists attacked the company over Bitcoin

Earlier this year, Tesla drew flak from some Tesla investors and environmentalists over it accepting Bitcoin as a method of payment. The dispute underlined the issue of 'advertising environmentally-friendly electric vehicles against the use of an energy-intensive digital currency', as per the BBC report. Because Bitcoin mining uses large amounts of electricity, the critics flagged the concerns if the energy is from fossil fuel or other renewable sources. 

Musk was also criticised for using his fame and influential position of one of the world’s richest people to support cryptocurrencies even when the top players in digital currency are being scrutinised by governments across the globe. During his recent appearance at the B word conference, Tesla CEO said that apart from Bitcoin owned by his companies, Tesla and Space X, he personally held Bitcoin, Ethereum and Dogecoin which he has often promoted as his ‘favourite.’ 

Addressing the increase in values of digital currencies that are sometimes due to him expressing his views on social media, Musk said, “I might pump, but I don't dump... I definitely do not believe in getting the price high and selling... I would like to see Bitcoin succeed." Shortly after his remarks, Bitcoin was reportedly up 6% at $31,952, and Ethereum was 10.6% higher at $1,979, as per Coindesk.

IMAGE: AP/Unsplash