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Elon Musk's tweet causes Bitcoin value to dip further, Musk says Tesla did not sell Bitcoin

Elon Musk in a reply to a tweet "clarified speculation" saying that Tesla has not sold any Bitcoin.

twitter-logoIndia Today Tech | May 17, 2021 | Updated 12:56 IST
(Picture: Reuters)

Highlights

  • The value of Bitcoin dipped further after Tesla CEO Elon Musk gave a vague reply to a Tweet on Sunday.
  • The tweet said Tesla might dump rest of its Bitcoin holdings.
  • Earlier this month, Musk rolled back Tesla’s decision to accept payment in bitcoin citing environmental reasons.

On Monday, Tesla CEO Elon Musk replied to a tweet to "clarify speculation" saying that Tesla has not sold any Bitcoin. Musk had earlier replied to a tweet from an unverified account on Twitter called @CryptoWhale which said, "Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings. With the amount of hate @elonmusk is getting, I wouldn't blame him".

Musk replied with a vague "indeed" but did not specify if Tesla sold off its Bitcoin or if he simply agreed with the sentiment that he faced criticism. On Monday, Musk clarified that Tesla has not sold any Bitcoin. Replying to a tweet from @BTC_Archive, "Bitcoin is down 20% since @ElonMusk started shitposting. And you wonder why some people are mad?"

Musk replied saying, "To clarify speculation, Tesla has not sold any Bitcoin."

Earlier this month, Musk said that Tesla will no longer accept payment in bitcoin citing environmental reasons. On Monday, Bitcoin dipped nearly 8 percent to around $44,000 per coin which is roughly Rs 3.2 lakhs.

Musk had earlier said that he backed that concern, especially the use of coal, which has the "worst emissions" of any fuel. "Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment," he had tweeted. Tesla shares fell 1.25 percent after hours.


Musk replied to another critic who termed Musk's recent criticism for bitcoin as the perfect troll. Tagging Elon Musk @PeterMcCormack on Twitter wrote that the "poorly informed criticism of #bicoin + support for Doge may be the perfect troll...or you might actually believe this (God I hope not)."

"Bitcoin is actually highly centralized, with supermajority controlled by a handful of big mining (aka hashing) companies. A single coal mine in Xinjiang flooded, almost killing miners, and Bitcoin hash rate dropped 35%. Sound 'decentralized' to you?" Musk replied. In another tweet to the same thread he added, "Hey cryptocurrency "experts", ever heard of PayPal? It's possible maybe that I know than you realize about how money works."

Tesla revealed in February it had bought $1.5 billion (roughly Rs. 10,930 crores) of Bitcoin, before accepting it as payment for cars in March, driving a roughly 20 percent surge in the cryptocurrency. Tesla would retain its Bitcoin holdings with the plan to use the cryptocurrency as soon as mining transitions to more sustainable energy sources, Musk said.

Bitcoin is created when high-powered computers compete against other machines to solve complex mathematical puzzles, an energy-intensive process that currently often relies on electricity generated with fossil fuels, particularly coal. Musk has asserted that he remained a strong believer in cryptocurrencies. "We are also looking at other cryptocurrencies that use <1 percent of Bitcoin's energy/transaction," he had tweeted.

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