The price of Bitcoin fell dramatically after Elon Musk revealed that Tesla would not allow consumers to use cryptocurrency to buy their cars.
The tech billionaire posted a statement on Twitter saying he and Tesla are concerned about the amount of fossil fuel needed to mine Bitcoin and want to make sure the cryptocurrency is as sustainable as possible.
“We are concerned about the increasing use of fossil fuels for bitcoin mining and transactions, especially coal, which has the worst emissions of all fuels,” said the CEO of Tesla Motors.
“Cryptocurrency is a good idea on many levels and we believe it has a bright future, but it can’t come at a cost to the environment.”
He added that Tesla would not be selling Bitcoin in the future either.
Musk said the company will look into other cryptocurrencies that use less than 1% of Bitcoin’s energy extraction rate.
Unsurprisingly, news of a tech billionaire who vocally backed crypto has caused Bitcoin’s price to drop sharply.
According to CoinDesk, the value of the most popular cryptocurrency was $ 54,174 per Bitcoin just before Elon’s statement was released.
Within minutes, it hit $ 52,314.
Other popular cryptocurrencies also suffered losses, including Ethereum (down 1.2%), Ripple (down 6.26%) and Dogecoin (down 9.48%).
Tesla stock also fell in the wake of the news and fell 4.42%.
Elon announced in February this year that Tesla would invest $ 1.5 billion in Bitcoin, which would push the value of the cryptocurrency past the $ 56,000 mark.
This is the second time in a week that Musk’s statements have driven the value of digital currency down sharply.
When he plugged Dogecoin into Saturday Night Live, the cryptocurrency has fallen dramatically.
People around the world have lost thousands of dollars after jumping on the Doge Train earlier in the week.
According to reports, Dogecoin’s price was around $ 0.70 before Musk started issuing and after talking about it, it fell to $ 0.49.
Like SNL finished it edged up slightly to around $ 0.57, but was still lower than it was before the show.
It was not the only one SNL mention of the cryptocurrency, because later on the show, Musk appeared as a financial expert and was repeatedly asked to explain what Dogecoin is.
After telling co-host Michael Che to call him ‘The Dogefather’, he explained, “He [Dogecoin] started off as a joke based on an internet meme, but now it’s taken off in a very real way. ”
After Che pulled a dollar bill out of his pocket, Musk added, “It’s about as real as that dollar … it’s the future of money, it’s an unstoppable financial vehicle. who will conquer the world. ”
Still not happy with the answer, Che asked, “What’s the matter, man?” He replied, “I keep telling you that this is a cryptocurrency that you can trade for conventional money.”
Che then said, “Oh, so it’s a commotion? What Musk agreed to, “Yeah, that’s a fuss.”