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Bitcoin Nears $40,000 as Musk Says Tesla May Accept Crypto Again in Future

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Published on:
June 14, 2021

Elon Musk says Tesla will accept Bitcoin when it's confirmed 50% of the energy used by miners comes from renewable sources.

Bitcoin Nears $40,000 as Musk Says Tesla May Accept Crypto Again in Future

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Bitcoin bounced back over the weekend, taking the world’s biggest cryptocurrency tantalizingly close to $40,000.

 

It hit a high point of $39,746.35 on Monday — a stark contrast from the lows of $35,730.60 that were seen over the weekend.

 

Elon Musk may have had a hand in the surge, given how he was tweeting (once again) about Bitcoin on Sunday.

 

He was responding to remarks from Magda Wierzycka, who had claimed that his remarks about BTC should have been investigated by the U.S. Securities and Exchange Commission — just like his tweets about Tesla’s stock price have come under scrutiny in the past.

 

Wierzycka, the CEO of the financial services company Sygnia, accused Musk of pumping up Bitcoin’s price and selling off a “big part” of Tesla’s $1.5 billion investment when it peaked. Replying to a Cointelegraph article about her remarks, Musk wrote:

“This is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.” 

An Interesting Disclosure

It was the second part of Elon Musk’s tweet that may have contributed to the bullish momentum we’ve seen over the past 24 hours.

 

You’ll remember that a big contributor to Bitcoin’s decline in value is linked to how Tesla has suspended accepting the cryptocurrency as a payment method — concerned about the impact that mining has on the environment.

 

Suggesting that this suspension may not last forever, Musk said:

“When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.”

A number of high-profile people in the crypto space are making a concerted effort to ensure that Bitcoin mining using the Proof-of-Work consensus mechanism is achieved using renewable energy.

 

El Salvador’s president is examining whether volcanos could power BTC mining in the future, while New York is pushing ahead with plans to ban data centers that fail to use renewable sources of energy.

Author(s)

Connor Sephton

I cover the crazy world of crypto.

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