Tesla announced in February that it had invested $1.5 billion in Bitcoin and signaled an intent to begin accepting the cryptocurrency as a form of payment.

Recently, crypto shares from the U.S. to Asia slid as Bitcoin plunged as much as 15%, sinking to a low of $46,045 before trimming the decline. Musk said he was worried over the “rapidly increasing” use of fossil fuels for Bitcoin mining and transactions, and suspended Tesla purchases with the asset, indicating he might favor other cryptocurrencies that don’t use as much energy.

Daniel Ives, an analyst at Wedbush Securities, wrote in a note to clients. “The nature of Bitcoin mining has not changed in the last three months, which speaks to why backtracking on the crypto transaction three months later is a very surprising and confusing move to both Tesla and crypto investors.”

What do you think?

For more information: https://www.bloombergquint.com/onweb/musk-s-bitcoin-concerns-sink-microstrategy-crypto-linked-stocks

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