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Crypto Community Reacts to Tesla Dropping BTC Payments

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Crypto Community Reacts to Tesla Dropping BTC Payments

The crypto community community at large has reacted in a variety of ways to Tesla dropping BTC payments.

Earlier, Tesla CEO Elon Musk announced that Tesla would no longer accept BTC as payment. The change of heart comes just two months after the electric car company started accepting BTC for vehicle payments. This followed Tesla’s influential purchase of $1.5 billion in BTC in February.

In a message embedded in the tweet, Musk said that Tesla is concerned about the increasing use of fossil fuels. He later added another tweet citing Cambridge University showing BTC’s energy usage trend over the past few months. But in the first tweet, he said that Tesla would retain its BTC holdings. He added that the company intends to reintroduce BTC payments “as soon as mining transitions to more sustainable energy.”

BTC’s transition to renewable energy

This turnaround comes as a shock to many who believed in Musk’s bullishness on BTC. However, his optimism that the BTC network will transition to a more sustainable track is consistent with earlier statements of his. 

Last month, in partnership with Ark Invest, Square released a whitepaper detailing how BTC would lead to incentivizing renewable energy. When Square CEO Jack Dorsey tweeted this, Musk simply responded “True.” Although he’s confident this will occur, Musk clearly feels that BTC is not there yet.

The crypto community responds

However, in response to the announcement, a slew of tweets from the crypto community seem to take issue with that notion. MicroStrategy CEO Michael Saylor called the move, “Ironic because no incremental energy is used in a #BTC transaction.” Sardonically, Binance CEO Changpeng Zhao said, “Elon probably did not research how much energy is required to run other (non crypto) currencies that Tesla accepts.” 

Billionaire Mark Cuban affirmed that his NBA team would still be accepting cryptocurrencies, “because we know that replacing Gold as a store of value will help the environment.” Galaxy Digital CEO Mike Novogratz commended Musk for using his influence to make BTC more sustainable. “He cares about the environment and he is using his considerable influence to push BTC mining towards a greener future,” Novogratz tweeted. 

Meanwhile, others see the market dip that followed as a good buying opportunity. “This may be the selloff that sets BTC up for new all-time highs,” said David Grider of Fundstrat Global Advisors. “We think the news is overblown and wouldn’t be surprised if Tesla is signaling plans to make crypto ‘greener.’”

Co-founder of U.S.-based Gemini cryptocurrency exchange, Cameron Winklevoss, seemed to second the idea. “In retrospect, it was a great buying opportunity,” he tweeted.

The post Crypto Community Reacts to Tesla Dropping BTC Payments appeared first on BeInCrypto.


All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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