Tesla stops car purchases with bitcoin
Tesla stops car purchases with bitcoin

As much as $365 billion wiped off cryptocurrency market after Tesla stops car purchases with bitcoin

Tesla stops car purchases with bitcoin

Hundreds of billions of dollars were washed off the entire cryptocurrency market after Tesla CEO Elon Musk tweeted that the electric vehicle maker Tesla stops car purchases using bitcoin.

At around 6 p.m. ET on Wednesday when Musk executed the announcement, the value of the entire cryptocurrency market held at around $2.43 trillion, according to data from Coinmarketcap.com. By 8:45 p.m., the market capitalization had fallen to around $2.06 trillion, wiping off nearly $365.85 billion.

Tesla stops car purchases with bitcoin 

Hundreds of billions of dollars were washed off the entire cryptocurrency market after Tesla CEO Elon Musk tweeted that the electric vehicle maker would suspend car purchases using bitcoin.

At around 6 p.m. ET on Wednesday when Musk executed the announcement, the value of the entire cryptocurrency market held at around $2.43 trillion, according to data from Coinmarketcap.com. By 8:45 p.m., the market capitalization had fallen to around $2.06 trillion, wiping off nearly $365.85 billion.

The market has since stripped some losses, and by around 3:00 p.m. on Thursday, the cryptocurrency market had seen around $290 billion cleaned off its value since Musk’s tweet. Bitcoin was down 10.6% at around $48,500, according to Coin Metrics data, its prime time below the $50,000 since Apr. 24. This is fallen up just beacsue of the decisions that “Tesla stops car purchases with bitcoin”.

Notwithstanding the recent pullback, bitcoin is still up above 400% in the last 12 months.

In February, Tesla announced in a regulatory filing that it had purchased $1.5 billion worth of bitcoin and projected to accept the cryptocurrency for payments.

Musk arraigned environmental solicitudes on Thursday and said Tesla is “concerned regarding the rapidly growing use of fossil fuels for Bitcoin mining and businesses, particularly coal, which has the worst eruptions of any fuel.”

Bitcoin is not circulated by a single item like a central bank. Alternatively, it is sustained by a network of so-called “miners.” These miners use purpose-built machines that require a lot of energy to solve complicated mathematical problems for bitcoin transactions to go through. Bitcoin’s energy consumption is larger than in some individual countries.

Other cryptocurrencies ether and XRP were also distinctly more inferior.

Musk has been a big proponent of digital currencies including bitcoin and dogecoin, helping to drive their prices higher in recent months.

The Tesla CEO said the company will not be selling any bitcoin and intends to use it for transactions “as soon as mining transitions to more sustainable energy.”

Tesla has stopped its dalliance with cryptocurrencies, changing its March 24 announcement to accept payments made in bitcoin for its electric vehicles, in an unexpected U-turn that sent the prices of the largest token tumbling on global exchanges. CEO Elon Musk’s cited cause was that mining bitcoin is too harsh on the environment; he said Tesla would not admit it for EV shopping until the production of the coin enhances to more environmentally friendly

Bitcoin has garnered interest in the last year as companies such as Square and Tesla announced bitcoin purchases and large institutional investors entered the cryptocurrency space. Major investment banks like Goldman Sachs and Morgan Stanley have also sought ways to allow their wealthy clients to get bitcoin exposure.

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