Elon Musk's Tesla Cut Ties With Bitcoin

13 May, 2021 CryptoParrot

Tesla Stops Accepting Bitcoin, Landing Blow to the King of Crypto

The Dogefather and internet celebrity Elon Musk made waves once again in the crypto community. Only this time, the headlines were not as beneficial towards the digital currency world. After making news that Tesla was the first car company on the planet to accept Bitcoin as one of its payment methods, the company reverted the decision on May 13th. 

The shocking decision was made, according to Musk's Twitter, because of BTC's mining energy costs. At this moment, it is not sure what the decision means for Dogecoin, another of Musk's preferable cryptocurrencies that has considerably lower energy consumption costs. 

Since much of Bitcoin's latest rally was in some sense connected to Elon Musk's role as an advocate of cryptos, the response in the markets was quick and intense. Over a couple of hours, BTC tumbled more than 10% of its value, finally dipping below the $50,000 psychological resistance. During the first hours of Thursday, Bitcoin was traded at $47k. 

Even though the "Elon Musk Dip" cannot be ignored, many crypto analysts pointed out faults in his argument. Even though Bitcoin spends a hefty amount of energy to mine, those values pale in comparison to the US Dollar and Gold's energy costs. Others mentioned that the dip will be recovered, and Musk's influence might even harm the recent rally than benefited it. 

No matter which side of the issue you are on, one thing is for certain: cryptocurrency's next days will be interesting to follow. 

User Avatar


Crypto Parrot Community Mgr - Here to help answer questions, fix things & help out when needed. Got feedback? Send those bad boys here: [email protected]

Related articles

Australians lost 3x more to scammers via bank transactions than Bitcoin payments in 2020

Investing in cryptocurrencies is a new trend in the financial markets that is rising in popularity, with Bitcoin occupying the center stage.…

2mins 23 Jun, 2021 CryptoParrot
Bitcoins held by the richest 10% addresses account for 99% of circulating BTC supply

For years, the issue of large bitcoin holders and their influence in the crypto market has been a major concern over their potential to sway general market direction.…

2mins 16 Jun, 2021 CryptoParrot
Meme coin DOGE was among the top 3 most-traded crypto assets in May

According to data acquired by cryptocurrency trading simulator Crypto Parrot, DOGE was the third most traded cryptocurrency on the largest digital asset exchange Binance with a volume of $116 billion in May.…

2mins 9 Jun, 2021 CryptoParrot
Over 40% of those engaged in Bitcoin community are millennials

Millennials are driving more interest in bitcoin, with the digital asset increasingly holding the potential to disrupt traditional finance systems.…

2mins 2 Jun, 2021 CryptoParrot
Start trading

Buy & sell Crypto in minutes. Join the world's largest crypto exchange

Learn more


Login to comment