Elon Musk tweeted on Sunday that Tesla will resume bitcoin transactions when mining is done with more clean energy. Soon after, the price of Bitcoin jumped above $39,000.
Elon musk’s Tesla, electric carmakers, will allow transaction again. Transactions will start back up “When there’s confirmation of reasonable (~50%) clean energy usage by miners with the positive future trend”. Musk also said that Tesla sold about 10% of its Bitcoin holdings to demonstrate bitcoin’s liquidity.
Posting was a reply to Cointelegraph’s report, which cited Magda Wierzycka, executive chair of South African asset manager Sygnia. She said that Musk’s recent tweets on Bitcoin should have prompted an investigation by US Securities and Exchange Commission.
In February, Tesla revealed it had bought $1.5 billion of Bitcoin and would accept it as a payment for cars. However, in May, he announced that Tesla would no longer accept Bitcoin for the purchase of the electric car, citing environmental concern.
Musk was recently invited to a meeting of Bitcoin miners by Microstrategy CEO Micheal Saylor to form a Bitcoin Mining Council. The Bitcoin Mining Council emerged from the meeting to exercise more renewable energy options and boost the transparency of cryptocurrency mining.
Though, according to Bloomberg, The Cambridge Centre for Alternative Finance estimates that renewable sources like hydroelectricity power 39% of crypto mining. However, it is unclear that how musk will fact-check miner’s clean energy usage.
Bitcoin gained up 9.3 % to $39,372 after the tweet. Musk has whipsawed Bitcoin and other digital tokens using social media in the past few months. Though the rally was already underway after the announcement of purchase from Microstrategy and G-7 comments on crypto optimistically.