A 12% increase in the price of Bitcoin has been seen since the Tesla CEO Elon Musk said on Sunday that his electric vehicle maker could accept bitcoin again in the future if there’s clean energy usage by miners.
As of 1:00 p.m. ET Monday, Bitcoin surged 12% to $39,200.40, as per data by Coindesk. The leading digital currency has increased over 30% since the beginning of 2021. However, its current price is way below the all-time high April hit of $64,829.14.
Those improvements happened after Mush tweeted on Sunday that “Tesla will resume allowing Bitcoin transactions when there’s confirmation of fair (-50%) clean energy usage by miners with the positive forthcoming trend.”
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 positive future trend, Tesla will resume allowing Bitcoin transactions.
— Elon Musk (@elonmusk) June 13, 2021
Car purchases through Bitcoin were stopped by Tesla in mid-May due to worries over the environmental impact of cryptocurrency mining. Some huge amounts of energy levels require fueling powerful computers in crypto mining.
According to the Bitcoin Electricity Consumption Index of Cambridge, crypto mining is consuming more energy than entire nations like Belgium and Finland.
The new announcement by Tesla owner initiates yet another phase of large market moves.
Musk May comments over the suspension of Bitcoin transactions brought a 40% decrease in prices of most of the cryptocurrencies, mainly the Bitcoin.
Bitcoin future under the environmental spotlight
The climatic impact of cryptocurrency mining has come under significant scrutiny. In late May, the Inner Magnolia region of China, a prominent bitcoin mining region, proposed penalties for companies and persons involved in the mining of digital currency. This crackdown came after Liu He, Chinese Vice Premier, cited “crackdown on Bitcoin mining” to prevent “risk to the social field.”
Iranian authorities have also announced a four-month ban on energy-consuming crypto mining. The ban will be effective until Sept. 22, and it was introduced after the officials reported blackouts in Tehran and many other big cities due to the energy-intensive activity of Bitcoin and other cryptocurrency mining.