Tesla CEO and cryptocurrency proponent, Elon Musk has once again spoken about Bitcoin and the possibility of his automaker company reversing its earlier ban on accepting bitcoin as a payment option. Reacting to a tweet posted by Cointelegraph, a cryptocurrency and blockchain media platform alleging that the CEO engages in price manipulation due to his status as being “powerful”, Elon Musk responded, attempting to set the records straight. He tweeted
“This is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market. When there’s confirmation of reasonable (~50%) clean energy usage by miners with a positive future trend, Tesla will resume allowing Bitcoin transactions.”
Apparently, Magda Wierzycka, the CEO of Sygnia, a Multi-Manager investment solutions, index-tracking investment solutions, customised/bespoke investment strategy in a recent interview with Bruce Whitfield at the Money Show had accused Elon Musk of staging a bitcoin pump and dump scheme by pumping the price and then “sold a big part of his exposure at the peak.” According to Wierzycka,
“The volatility we have seen is an unexpected function of what I would call market manipulation by Elon Musk. If that happens to a listed company, he would be investigated and severely sanctioned by SEC.”
Recall that Musk had posted an update that Tesla had halted accepting bitcoin, citing Bitcoin mining environmental concerns saying:
“Tesla has suspended vehicle purchases using Bitcoin. We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel. Tesla will not be selling any Bitcoin as 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”.
With his latest tweet, it looks like Tesla won’t be “looking at other cryptocurrencies” especially with his seeming obsession with DOGE, a meme currency. Meanwhile, popular bitcoin maximalist like Peter McCormack, host of What Bitcoin Did called out Elon’s tweet saying “bitcoin is already +70% clean energy. Keep up lad.” Dan Held, head of growth Kraken exchange also pointed to a study that shows that “over 74% is powered by clean energy.” Hence, Elon Musk might not be up to date on the state of Bitcoin mining activities and the sources of energy used for its global operations.
It might then appear that Elon Musk and his companies took a decision based on a false premise that Bitcoin mining was hazardous to the environment especially with the fact that he unilaterally stated that Tesla would resume accepting bitcoin as a payment option only when 50 per cent of the overall mining energy sources are renewable when in fact much more than is already renewable energy sources.
China had cracked down on Bitcoin mining within three of its provinces namely Xinjiang, Mongolia and Sichuan all of which are said to account for at least two-thirds of the global mining activity run on renewable energy sources like hydroelectric power.
Meanwhile, bitcoin price jumped by over 8 per cent increase on the news that Tesla would start accepting bitcoin in the future moving from the $34K region to over $39K.