By Larry Wright
Tesla is known for its exuberant Bitcoin investment at the beginning of this year which was rated at 1.5 Billion dollars, and thanks to Elon Musk and his vision to make the trade at the moment, it has seen huge returns too. Elon Musk was very supportive of Bitcoin in the beginning, but his focus shifted rapidly after some time. A lot of it has to do with the use of natural resources and fossils such as coal and gas by Bitcoin for the sake of mining and keeping the integrity of its blockchain.
Elon Musk believes that these practices are not only harmful to our environment but don’t add to the actual worth of Bitcoin if it continues down this path in the long run. Due to this mishap, Elon Musk has cut ties with Bitcoin indefinitely, Tesla was first accepting Bitcoin as a mode of payment, but then it halted this initiative altogether. As of the funds or Bitcoin tokens that were acquired by Tesla, these remain intact without even a single one of them being sold by the company.
Tesla has Earned Profit on Bitcoin Investment
In the last filing of Tesla with the Securities and Exchange Commission, the electric vehicle company said that they had not sold even a single token of Bitcoin, and they might once again start accepting Bitcoin as a mode of payment. Around $1.5 billion were invested in Bitcoin by the company, and we have cultivated a very strong return on these investments over the course of several months. There was this very calculated proposition by Elon Musk that Tesla will not accept Bitcoin until it changes its energy consumption to a more green level.
At present, the energy consumption practices of Bitcoin are fatal and a severe blow to our environment. Elon Musk said that if the whole Bitcoin network is consuming equal or more than 50% of the renewable green energy, then the company will definitely look into accepting Bitcoin once more. Many miners have relocated their operations into Europe and United States from China, especially after it has issued a very severe crackdown. It seems that the overall energy consumption of Bitcoin is above 50% for the sake of renewable energy, and that is why the company is looking into taking the flagship cryptocurrency back.