Bitcoin Rises After Tesla Proposes Accepting Crypto Again

The price of Bitcoin soared after Tesla CEO Elon Musk said on Sunday that the electric car maker may accept Bitcoin transactions again in the future.

Bitcoin jumped to $39,095, up 9 percent in the past 24 hours, and up from $34,880 in early trading on Sunday.

Since the beginning of the year, Bitcoin has risen more than 30 percent, although it has seen sharp fluctuations.

It reached an all-time high of $64,829 in April. It reached its lowest level near $30,000 in May. And that after a 30 percent collapse in one day.

The weekend’s gain came after Musk said on Sunday that Tesla will resume allowing bitcoin transactions when there is confirmation of reasonable clean energy use (about 50 percent) by miners with a positive future direction.

Musk was responding to comments by Magda Wirzyzka, CEO of Sygnia, who said Musk’s tweets about pricing were market manipulation and were supposed to trigger an investigation by the US Securities and Exchange Commission.

Tesla revealed in February that it had bought $1.5 billion worth of Bitcoin. It said it is starting to accept digital currency as a payment method for its products.

But it stopped buying cars with cryptocurrency in mid-May, citing concerns about the climate impact of crypto mining.

Bitcoin under the spotlight:
“We are concerned about the rapid increase in the use of fossil fuels for currency mining and transactions, especially coal, which produces the worst emissions of any fuel,” Musk said in May.

Cryptocurrency mining requires huge amounts of energy to power computers. Bitcoin mining consumes more energy than entire countries such as Finland and Belgium, according to the CBECI Electricity Consumption Index.

The latest development is another example of big market moves following the Tesla CEO’s comments.

Hundreds of billions of dollars have been wiped out from the cryptocurrency market. That’s after Musk tweeted in May about Tesla’s suspension of buying cars with Bitcoin. Musk’s previous tweets have also been linked to moves in the stock market.

The environmental impact of Bitcoin mining has come under intense scrutiny. As part of its campaign against bitcoin, China’s Inner Mongolia region – a major bitcoin mining hub – in late May proposed sanctions against companies and individuals involved in cryptocurrency mining.

This came after the Chinese vice premier said that it is necessary to crack down on bitcoin mining and trading behavior to prevent individual risks from transferring into the social sphere.

Elsewhere, the Iranian government in May announced a ban on Bitcoin and other cryptocurrency mining until September 22, after officials said power outages in the country’s capital, Tehran, and several other major cities were due in part to energy-intensive mining activity.

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