Investors in Bitcoin, the most popular and capitalised cryptocurrency, are having a hard time as at least $365 billion has been wiped off their investments after Tesla’s founder,Musk had tweeted that the electric carmaker would suspend purchases using Bitcoin, citing environmental reasons, setting off a selloff in theAll major cryptocurrencies have seen major setback in their prices with some losing as much as 18 per cent compared to yesterday’s value.
The price of Ethereum had declined by 13.29 per cent to $3,728 while the price of Binance Coin and Dogecoin had depreciated by 14.55 per cent and 21.62 per cent in less than 24 hours. By yesterday morning, Musk tweeted that Tesla was concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, saying its emissions levels posed danger to the environment.Bitcoin is not issued by a single entity like a central bank. Instead, it is maintained by a network of so-called ‘miners’. These miners use purpose-built computers that require a lot of energy to solve complex mathematical puzzles in order for Bitcoin transactions to go through.
“Telsa will not be selling Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use less than one per cent of Bitcoin’s energy/transaction.”
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