Tesla has suspended vehicle purchases using Bitcoin due to climate change concerns, Elon Musk said in a tweet. Bitcoin is not exactly a green project due to electricity consumption. Mining the cryptocurrency involves using vast amounts of computer processing power to solve complex mathematical puzzles. The cryptocurrency uses more energy than entire countries such as Sweden and Malaysia, according to researchers.The dominance of Chinese Bitcoin miners and lack of motivation to switch from cheap fossil fuels to more expensive renewable energy sources could mean there are few quick solutions to the emissions concerns over Bitcoin. Bitcoin fell by more than 10% after the Elon Musk’s tweet, while Tesla shares also dipped. Previously, the electric carmaker had in February revealed it had bought $1.5bn (£1bn) of the world’s biggest digital currency.
On Thursday, the things changed. “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Mr Musk wrote. “Cryptocurrency is a good idea… but this cannot come at great cost to the environment,” he added. Tesla’s CEO also declared the electric carmaker being a clean energy-focused company would not sell any of its Bitcoin, and intends to use it for transactions as soon as mining shifts to using more sustainable energy. Musk isn’t the only one who’s worried about the environmental impact of bitcoin. In February, Treasury Secretary Janet Yellen warned that the digital coin is “extremely inefficient” for making transactions and uses a “staggering” amount of power.