Tesla will only accept bitcoin again as a means of payment if that digital currency starts to run on more green energy. If half of the energy consumption comes from renewable sources, that is acceptable. Tesla CEO Elon Musk made this known on Twitter.
That tweet was good news for bitcoin investors. The price of digital currency rose by about 10 percent to almost $ 40,000.
Tesla announced earlier this year that it had bought $1.5 billion worth of bitcoins. In March, it started accepting payments with the coin, but within two months, the company that makes electric cars, batteries for homes and businesses and solar panels stopped. This caused a sharp fall in the currency. Tesla had given the enormous environmental impact of cryptocurrency as a reason to stop accepting the coin as a means of payment so quickly.
Musk was accused of price manipulation because of the rapid changes. The CEO of Tesla and space company SpaceX denies that. According to Musk, Tesla has sold about a tenth of its original bitcoin holdings, demonstrating that this can be done without having a huge impact on the price.
Bitcoin works based on blockchain technology, a kind of collective log in which all participants together keep track of all transactions. That register is updated every 10 minutes with a new ‘page’ with the latest changes. To safely handle each addition, a complex mathematical formula must be solved. Worldwide unique computer systems are used all day long to puzzle out what costs a lot of energy. That’s called mining. Whoever solves the formula will be rewarded in bitcoins.