Tesla has suspended vehicle purchases using bitcoin, Elon Musk has announced.

"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," the CEO of Tesla Motors said in a statement.

"Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment.

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"Tesla will not be selling any bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy.

"We are also looking at other cryptocurrencies that use <1% of bitcoin's energy/transaction."

 

 

The price of bitcoin immediately plunged after Mr Musk's announcement this morning, falling from $54,500 to $52,000.

 

The price of bitcoin plummeted following Elon Musk's announcement that Tesla would suspend the purchasing of vehicles with the cryptocurrency. Picture: Coindesk
The price of bitcoin plummeted following Elon Musk's announcement that Tesla would suspend the purchasing of vehicles with the cryptocurrency. Picture: Coindesk

 

Mr Musk announced on February 9 this year that Tesla would invest $1.95 billion in the cryptocurrency.

He also revealed that Tesla would begin accepting bitcoin as payment for its cars and other products in the near future.

That led to a massive spike in the value of bitcoin - with the crypto surging past $56,000.

More to come

 

Originally published as Bitcoin plunges after Elon Musk tweet



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