Tesla Is Considering Accepting Bitcoin Again

Tesla and Bitcoin’s previous partnership ended due to Bitcoin’s energy use. However, Tesla has stated they might partner again if Bitcoin can reduce energy consumption.
Written by Brandon Moore
Reviewed by Kathleen Flear
Sep 29, 2021
Tesla
is the biggest name in electric vehicles (EVs), which puts them at the forefront of eco-friendly cars. Because of this, it was surprising to many when Tesla accepted
Bitcoin
as a form of payment.
In response to criticisms about accepting the cryptocurrency, Tesla stopped accepting Bitcoin. However, according to
The Drive
, Tesla CEO Elon Musk has stated that they will likely accept Bitcoin again in the future.

Bitcoin's excessive energy use

Tesla and Bitcoin might be partnered again in the future
One of the biggest issues with Bitcoin and cryptocurrency as a whole is the energy consumption that it requires. Mining Bitcoin is an energy-intensive process, and critics worry about the effects that this has on
climate change
.
The answer to this criticism could lie in renewable energy, but making that switch is easier said than done. The demand for mining Bitcoin is high, and energy from coal or
gas
is often easier to get than cleaner energy.
Tesla and Bitcoin are similar in that they are examples of modern technology. However, Tesla's technology is seen as a step forward in a more environmentally friendly world. Bitcoin, on the other hand, requires energy use that at this time has been anything but environmentally friendly.

Will Tesla accept Bitcoin again?

Despite the controversy over Tesla accepting Bitcoin as payment, there are still Bitcoin enthusiasts who are interested in purchasing Teslas. There would certainly be money to be made if the relationship between Tesla and Bitcoin was repaired, even though some would protest it.
Because of this, Tesla has had to consider the future of Bitcoin. At a recent cryptocurrency conference, Elon Musk addressed the issue.
Before Tesla accepts Bitcoin again, Musk wants to see that the Bitcoin network is using 50% renewable energy or is making progress toward this number. He stated that he wants Tesla to investigate the current energy practices of Bitcoin thoroughly to gain a better understanding of where they are at.
Many believe that it is unlikely that Bitcoin has already made significant progress to this 50% clean energy milestone. Because of this, the relationship between Musk and Bitcoin has been another focus of conversation.

Elon Musk's history with Bitcoin

Critics of the relationship between Tesla and Bitcoin also note the impact that CEO Elon Musk has on the Bitcoin market. Musk has been outspoken about his interest in cryptocurrency, both in Bitcoin and in other crypto names like the joke Dogecoin.
His interests in the subject can be seen in his tweets and were a major topic of conversation when Musk recently hosted Saturday Night Live.
Many worry that he has too much power on the cryptocurrency market, though. Observers have noticed that the price of Bitcoin shifts drastically with him talking about it. The biggest impact Musk has had on Bitcoin prices came when it was announced that Tesla would not accept the cryptocurrency, which drastically decreased Bitcoin's value.
This is part of why people are skeptical about the announcement that Tesla may once again accept Bitcoin. It is unknown whether Musk genuinely believes that Bitcoin mining has become more
eco-friendly
or if this is an opportunity for him to make money.
Tesla is renowned among auto and tech enthusiasts alike for making electric vehicles mainstream and stylish. However, Tesla and CEO Elon Musk have come under fire for their relationship with cryptocurrency.
As electric vehicles continue to become more popular, the world will have to wait and see if Bitcoin is part of the future of EVs.
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ClearCover
CSE
Dairyland
DirectAuto
Elephant Auto Insurance
Kemper
Libertymutual
Gainsco
Mapfre
Mercury Auto
Metromile
Nationwide
Plymouth Rock
Progressive
State Auto
Safeco
Travelers
Metlife
Bristol West

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