CEO Musk says on Twitter "Tesla stops Bitcoin payments"
"Rapid increase in fossil fuel use" points out environmental issues
"Lost everything with one tweet", "Scammer" criticism pours in on SNS
[Asia Economy Reporter Lim Juhyung] Tesla CEO Elon Musk announced that he will suspend Tesla vehicle payment services using Bitcoin, causing cryptocurrency prices to plummet. This effectively reverses Tesla's position just three months after it announced plans to accept Bitcoin as a payment method. CEO Musk explained that he considered the environmental pollution caused by Bitcoin's excessive power consumption, but some critics argue that he has harmed many investors.
On the 12th (local time), Musk posted on his Twitter account, "We are suspending Tesla vehicle purchases using Bitcoin," adding, "because fossil fuel usage, especially coal, in Bitcoin mining is rapidly increasing."
He continued, "There is no doubt about the promising future of cryptocurrencies," but emphasized, "We cannot pay the price with the environment."
He also added, "We are looking for other cryptocurrencies that consume less than 1% of the energy used in Bitcoin mining." Following Musk's 'bombshell statement,' cryptocurrency prices fluctuated significantly. According to the cryptocurrency information site 'CoinDesk' on the 13th, Bitcoin prices dropped nearly 20% compared to the previous day during the morning.
Earlier, Tesla, led by CEO Musk, purchased $1.5 billion (about 1.7 trillion KRW) worth of Bitcoin in February and announced plans to accept Bitcoin as a payment method when selling Tesla vehicles in the future. Musk effectively withdrew this position after about three months.
CEO Musk has mentioned 'Dogecoin,' a type of cryptocurrency, several times on his Twitter account. / Photo by Yonhap News
The reason CEO Musk reversed his stance on Bitcoin is due to the enormous power consumption involved in cryptocurrency mining. According to the 'Cambridge Bitcoin Electricity Consumption Index' published by the University of Cambridge in the UK, the power consumed by Bitcoin mining approaches 130.90 TWh (terawatt-hours) annually, which is comparable to the annual electricity consumption of Argentina.
However, some netizens have criticized CEO Musk. They claim that he suddenly 'betrayed' many investors after repeatedly mentioning Bitcoin in official settings and raising expectations.
CEO Musk has recently mentioned 'Dogecoin,' a type of cryptocurrency, several times on Twitter. He even claimed to be the 'dogefather' (father of Doge).
Many Americans reportedly invested in cryptocurrencies after seeing his tweets. According to a March survey by the American polling firm 'Piplsay,' 37% of Americans responded that they had made personal investments after seeing Musk's cryptocurrency-related tweets.
Netizens expressed disappointment toward CEO Musk with comments such as "I lost everything because of his tweets," "Irresponsible remarks," and "Does he treat investing like a joke?"
One netizen strongly criticized, "Musk knew the influence he had and deliberately ruined many lives. He intentionally led coin price manipulation. He is a fraud."
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