Tesla believes in the future of cryptocurrencies. More than a year after investing in Bitcoin (BTC), the builder has deemed cryptocurrencies an alternative to cash. Despite these encouraging words, the group is reluctant to announce the return of Bitcoin payments. On the other hand, the company turned to Dogecoin (DOGE).
Tesla announces belief in the future of cryptocurrencies
Tesla confirms its interest in cryptocurrencies. In its latest report to the Securities and Exchange Commission (SEC), the US federal financial market regulator, the automaker adopted a very favorable position about digital currencies:
“We believe in the long-term potential of digital assets both as an investment and as an alternative to cash.”
For Tesla, cryptocurrencies like Bitcoin (BTC) are not just assets but means of exchange. In other words, the auto firm believes that digital currencies represent a viable alternative to fiat currenciessuch as the dollar or the euro.
Tesla did not invest in Bitcoin just to make profits by speculating on rising prices. Unsurprisingly, the electric car giant reserves the possibility “to increase or decrease” his “Hold digital assets at any time based on business needs” and “market conditions”.
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Tesla and cryptocurrencies, a complicated relationship
Tesla has never hidden its attraction to cryptocurrencies. However, the emerging relationship between the firm ofElon Musk and crypto-assets has been punctuated by many adventures. In February 2021, Tesla first accepted Bitcoin (BTC) payments for its customers in the United States. It was possible to buy a brand car by paying the bill with bitcoins.
In the process, the electric car giant invested 1.5 billion in the oldest digital currency. According to the latest report filed with the SEC, Tesla held $1.96 billion in Bitcoin as of March 31, 2022. The firm has already realized a nice capital gain on its initial investment.
Under pressure from shareholders, Tesla chose toabandon bitcoin payments a few weeks after the announcement. The American group claimed to be concerned about the use of ” carbon-rich fuels » by mining farms.
Subsequently, Elon Musk pledged to reintegrate Bitcoin payments as soon as mining farms massively convert to green and renewable energy. The CEO of Tesla demanded that 50% of miners rely on clean energy before announcing the return of cryptocurrency payments.
To accelerate the industry’s shift to green energy, Tesla has partnered with blockJack Dorsey’s start-up, and Blockstream, the publisher of blockchain applications. The three companies have embarked on the construction of a Bitcoin mining farm in Texas. This infrastructure will be entirely powered by solar energy.
Elon Musk is reluctant to re-enter Bitcoin
Despite efforts by miners, Elon Musk has yet to announce the return of bitcoin payments. The billionaire nevertheless admitted that the mining industry has already made significant changes to reduce your ecological footprint. However, a study by the New York Digital Investment Group (NYDIG) reveals that Bitcoin will represent only 0.9% of carbon emissions in the world in 2030.
And, of course, you can pay in Ðoge
— Elon Musk (@elonmusk) February 19, 2022
At the same time, Tesla has started to accept Dogecoin (DOGE) as a means of payment on its official online store. Some of the products offered by the brand can be purchased with cryptocurrency.
On Twitter, Elon Musk also announced that Tesla will accept Dogecoin at some charging stations for electric cars, starting with the new Supercharger under construction in California. In the meantime, there are no signs of Bitcoin returning to Tesla.
👉 Read also: Tesla sold some of its bitcoins to “prove the liquidity” of cryptocurrency
Source: SEC
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