Bitcoin Drops More than 10% After Elon Musk Announces that Tesla will Suspend Car Sales with the Cryptocurrency

Suspension occurs due to concern about the environmental impacts caused by cryptocurrency mining.

Elon Musk reported on Wednesday night (12) that Tesla will stop selling its cars using Bitcoin because of the environmental impacts caused by cryptocurrency mining.

With the speech of the executive, Tesla‘s shares started to fall in the after makert in New York, after having fallen 4.42% in the regular trading session. This Thursday, the shares fall more than 3%.

Bitcoin, which was also showing losses, accentuated its decline shortly after the speech, losing 5% in value in a few minutes. In the hours that followed, the devaluation deepened and the cryptocurrency lost its $ 50,000 level.

At 4 pm (Brasília time) on Thursday, Bitcoin was down 10.3%, quoted at $ 48,391, while in reais the drop was 10.5%, to R $ 255,726.

“Tesla has suspended vehicle purchases using Bitcoin,” said Musk on Twitter. “We are concerned about the growing use of fossil fuels for mining and bitcoin transactions, especially coal, which has the worst emissions than any fuel.”

“Cryptocurrency is a good idea on many levels and we believe that it has a promising future, but it cannot be costly to the environment,” he continued.

Musk said Tesla would not sell any Bitcoin it currently owns and would use it again “as soon as mining makes the transition to more sustainable energy.” Until then, he said Tesla will look at other cryptocurrencies that use less energy to mine.