Elon Musk, the CEO of the US company, had earlier said that Tesla electric cars can be bought by paying for Bitcoin. This time he announced the cancellation of the plan. And then the price of Bitcoin goes down. Tesla's share price has also decreased.
The price of every bitcoin fell 12 percent to around 50,000 on Thursday, according to the cryptocurrency-based web portal Coindesk.
Elon Musk cited the negative impact on the environment as the reason for the sudden cancellation of the Bitcoin payment facility, CNN reported.
He wrote on Twitter on Wednesday, "Our concern is that bitcoin mining and transactions have led to an increase in the use of fossil fuels, especially coal." In many ways, cryptocurrency is a great idea and we believe that its future is promising. However, it can not be a big damage to the environment.
Creating digital currency with algorithm solutions is called mining. Computer servers used in mining consume huge amounts of electricity. And in many countries electricity generation is dependent on coal. This aspect of digital currency has been criticized for a long time. Elon Musk didn't know it for so long, it's not supposed to happen.
Last February, Tesla announced a 1.5 billion investment in Bitcoin and the convenience of buying a car in return. At the end of March, Musk tweeted that from now on people will be able to buy cars on Bitcoin.
Tesla is still considering selling cars on Bitcoin, Musk said. "Tesla will not sell any bitcoins and we want to use them in transactions if we use reliable fuels in mining," he wrote on Wednesday. We are also trying to introduce transactions in other digital currencies, which can run on less than one percent of Bitcoin's electricity consumption.
Musk tweeted a few days ago asking if he should be allowed to buy a car in another digital currency called Dodgecoin.