Why you can trust Jerry
Jerry partners with some of the companies we write about. However, our content is written and reviewed by an independent team of editors and licensed insurance agents, and never influenced by our partnerships. Learn more baout how we make money, review our editorial standards, reference out data methodology, or view a list of our partners
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
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.
Shopping for car insurance has also changed with the advancements of technology. The next time you are looking to change your coverage, let Jerry help. It takes 45 seconds to sign up, and Jerry uses artificial intelligence to compare quotes and find the best, most affordable coverage for you.