California-based electric carmaker Tesla may resume accepting Bitcoin payments if more than half of the energy used for mining comes from renewable sources.
According to a tweet by its CEO and product architect Elon Musk, Tesla might not be finished with Bitcoin. Musk revealed that the electric vehicle and clean energy company could someday allow Bitcoin payments again. The announcement, posted on Twitter, was a response to claims from Sygnia CEO Magda Wierzycka that Musk was using his influence to manipulate Bitcoin prices.
Wierzycka alleged that Musk abused his influence and urged the US Securities and Exchange Commission to investigate him. The billionaire entrepreneur has posted several tweets that reference Bitcoin and other cryptocurrencies such as Dogecoin. Some members of the crypto community reacted negatively, arguing that his posts can move market sentiment and affect prices.
Tesla’s involvement with cryptocurrencies began earlier this year when the company announced a direct investment of $1.5 billion in Bitcoin. In March, Musk followed up by saying Tesla customers in the United States would be able to make payments in Bitcoin, and that the company would not convert the received Bitcoin into cash.
In the last week of April, Tesla released its first-quarter earnings report, which showed the company had sold about 10% of its Bitcoin holdings. Wierzycka claimed that Musk had deliberately bought a large amount of Bitcoin to pump the price and planned to sell once the value rose.
In response, Musk tweeted: “That’s inaccurate. Tesla only sold ~10% of the holdings to confirm that BTC could be liquidated easily without moving the market.”
Last month Tesla reversed its decision to accept Bitcoin, citing concerns about the energy used in mining. Musk’s latest tweet, however, suggests the company could reintroduce Bitcoin as a payment option.
He indicated that Tesla would permit Bitcoin transactions again if more than half of the energy used for mining is sourced from renewables.
Musk wrote: “If there is confirmation of reasonable (~50%) clean energy usage by miners with a positive trend, Tesla will resume allowing Bitcoin transactions.”
Some reports suggest the announcement contributed to the recent upward movement in Bitcoin’s price. Others argue that Musk’s timing conveniently coincided with an already developing rally. Regardless, the statement offers renewed hope that the debate over Bitcoin’s energy consumption and environmental impact may move toward resolution.