Bitcoin Falls 12% After Musk Says it Consumes Too Much Energy

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Bitcoin Falls 12% After Musk Says it Consumes Too Much Energy
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- For all the talk of big names and financial institutions buying Bitcoin in the second half of 2020 and early 2021, the flagship cryptocurrency remains volatile. Bitcoin has fallen 11.71% to $50,106 as of this report from $56,755 on May 11.

This sharp fall is due to Tesla Inc (NASDAQ: TSLA ) and SpaceX Founder Elon Musk’s decision to not accept Bitcoin as payment for Tesla cars as he tweeted a graph of the cryptocurrency’s energy consumption and said “Energy usage trend over past few months is insane.”

On May 12, he had said that Tesla would stop accepting Bitcoin as payment because the cost to the environment was too high. Bitcoin had fallen over 17%, to less than $49,000 on Thursday, before regaining some ground today morning.

However, Musk has said that Tesla will not sell any of the Bitcoin on its balance sheet, and will use the cryptocurrency when mining it is possible through sustainable resources.

Musk’s comments on and Tesla’s purchase of Bitcoin have played a major role in taking Bitcoin from $28,990 at the end of 2020 to over $63,000 in April 2021. In February, Tesla said that it had bought $1.5 billion of Bitcoin. In April, it said that it had sold 10% of its holding, for a profit of $100 million.

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  • Sridhar N Rao @Sridhar N Rao
    Wow, poor guy. Elon Musk did not know about the power consumption that goes into mining bitcoins! Poor guy, don’t blame him because nobody told him!
    Like 1
  • Paresh Mokal @Paresh Mokal
    Elen mask is creat panic he will now buy bitcon at lower price and then after few days he will again say positive news on bitcon and then again bitcoin will jump up that time he will exit with the big profit he is manupuling market
    Like 3
  • Ankush Singh @Ankush Singh
    Musk just shared what cambridge univeraity research department of USA found out.!!
    Like 0

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