Category: Cryptocurrency

Elon Musk’s latest tweet almost doubles Dogecoin price in hours

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A week after asking his Twitter followers whether his electronic vehicle company Tesla should start accepting Dogecoin, Elon Musk once again tweeted on Thursday, May 20, supporting the cryptocurrency, leading to a rise in price of the meme cryptocurrency.

Following a tweet by Musk, the price of Dogecoin spiked to $0.40 from $0.29 earlier in the day after a frenzied sell-off on May 19.

Musk tweeted, “How much is that Doge in the window?”

How much is that Doge in the window? pic.twitter.com/bxTkWOr50V

— Elon Musk (@elonmusk) May 20, 2021

According to Yahoo News, Musk’s tweet comes just hours after the cryptocurrency market plummeted into the red, reportedly following a renewed crackdown in China whose central bank issued a statement asking its financial institutions not to accept or deal with cryptocurrencies.

Elon Musk’s recent tweets about cryptocurrencies have created a sharp rise and fall in the price in the crypto market. The price of the largest cryptocurrency Bitcoin continued a slide after Musk’s flip-flops on Tesla’s holding of the digital currency.

Musk first raised concern about the environmental impact of Bitcoin mining and announced Tesla won’t accept the cryptocurrency payment for its cars. Then in another tweet, he mentioned Tesla not selling $1.5 billion worth of Bitcoins in its possession.

Bitcoin’s value fell below $40,000 on May 19 following the frenzy created around Elon Musk’s tweets over the last week.

Last week, the Tesla co-founder asked his 54 million followers, “Do you want Tesla to accept Doge,” referring to the meme-cryptocurrency Dogecoin, which he has been endorsing since over a year.

Musk recently made another announcement that Dogecoin would be accepted by SpaceX for a satellite launch to the moon. The billionaire had tweeted, “SpaceX launching satellite Doge-1 to the moon next year — Mission paid for in Doge — 1st crypto in space –1st meme in space. To the mooooonnn!! (sic).”

According to Coinbase, the Dogecoin is currently trading at a value of $0.41 with a 20 percent hike in the last 24 hours.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cathie Woods of Ark Investment believes Bitcoin will reach $500,000

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Cathie Woods, CEO of Ark Investments, said Bitcoin will reach $500,000 even as the world’s largest cryptocurrency had sunk to a low of nearly $30,000 on May 19.

The cryptocurrency had a wild ride since the start of last year. Exactly a year ago, Bitcoin’s valuation was hovering at just under $10,000, then it reached its all-time peak of $65,000 on April 21.

In an interview with Bloomberg TV, Wood said Bitcoin’s current prices were “on-sale” and that she didn’t think the current prices reflect the bottom for Bitcoin. She also added that the chances of a Bitcoin exchange-traded fund approval in the United States are much more likely after the price has fallen off its speculative high.

“The odds are going up now that we have had this correction,” she said.

One of the reasons for Bitcoin’s significant slump in price is Tesla founder Elon Musk’s tweets. Musk, a vocal proponent of cryptocurrencies had announced in February that his company, Tesla, would start accepting Bitcoin payments for its cars. Tesla had bought $1.5 billion worth of Bitcoins early this year. Soon after Musk’s tweet the price of the Bitcoin surged.

However, Musk recently announced that Tesla would stop accepting payments for its cars in  Bitcoin due to environmental concerns regarding Bitcoin mining.

His comments soon sparked a massive dump and Bitcoin’s price fell by $2,000. However, the billionaire has cryptically tweeted that Tesla would be holding onto Bitcoins in its possession for now.

During the interview, Wood explained that the adoption of solar energy in mining will accelerate dramatically while responding to the environmental concerns raised by Elon Musk.

Woods is the CEO and Founder of Ark Investments, an investment management firm that actively handles exchange-trade-funds (ETFs) and has over $50 billion worth of assets under its portfolio management. The company often chooses to focus on investing in disruptive technologies like AI, Blockchain, CRISPR gene editing, robotics etc.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Lessons from Bitcoin price fall and future of the cryptocurrency

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The recent selloff in the most popular cryptocurrency -the Bitcoin, is a wake-up call for those investors smitten by astronomical returns provided by this unofficial unit.

The thrashing received so far highlights the importance of sovereign currencies and the need to understand the risk associated with cryptocurrency.

Although, it is desirable to expect volatility in a speculative risk asset, taking an informed decision based on the degree of uncertainty overrides the benefits on offer.

Uncertainty over its value in the near future amid such high volatility limits the need for bitcoins and other cryptocurrencies as a medium of exchange.

Bitcoin, the largest cryptocurrency by market value, on Wednesday had plunged 30 percent to hit the $30,000 level, weighed down by China’s regulations on crypto trades and Tesla’s decision to suspend vehicle purchases using Bitcoins.

Read here: Bitcoin collapse explained: Why has the cryptocurrency nosedived?

In the last 24 hours, Bitcoin touched an intraday high of nearly $40,000 and a low of $30,000. Bitcoin is still over 200 percent up from September 2020 and 27 percent so far this year.

This shows the huge amount of volatility that persists in the crypto market as against the traditional currency market.

“A nearly 40 percent dip in bitcoin price from its all-time high looks dramatic but is normal in many volatile markets, including crypto, especially after such a large rally,” said Avinash Shekhar, co-CEO of ZebPay.

Such corrections are mainly due to short-term traders taking profits, while long-term value investors might call these lower prices a buying opportunity.

“Technical analysts would call this a test of the support level around $40,000. Neither type of investor would say that tweets are the underlying cause. Investors should invest in education first. Research the underlying value of Bitcoin, Ethereum, and other crypto-assets as you might look at a company’s information before buying stocks. Use strategies like rupee cost averaging and SIPs to more confidently manoeuvre through volatility and take a long-term view,” Shekhar added.

Nithin Kamath, founder and CEO at Zerodha said he has no exposure to cryptocurrencies, “But the rules for investing are the same: Reduce percentage exposure if the risk is high, and do not average down.”

Also Read: Short term vs long term: Which is better for investments in cryptocurrencies?

According to Sumit Gupta, founder and CEO—CoinDCX, investments in cryptocurrencies too should be driven by financial situation and goals.

For those looking to diversify and grow their portfolio, Gupta believes that a long-term approach is warranted to benefit from the potential rewards of blockchain technology and its positive impact on cryptocurrency prices.

On the other hand, for immediate goals, he thinks that adopting a short-term approach with a clear risk-reward ratio is beneficial with quicker potential returns.

“Wisdom would point towards thorough research, entry near support levels for the said cryptocurrency and ensure to periodically review holdings while maintaining a strict stop loss based on risk appetite,” Gupta added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Government mulls new policy on cryptocurrency in India: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The government may form a committee of experts to oversee cryptocurrency trade in the country as it looks at possibilities to regulate the digital currency instead of banning it altogether, according to a report on Wednesday. 

The Centre is likely to form a panel of experts whose role could be to study the use of blockchain for technological enhancement and recommend ways to regulate cryptos as digital assets instead of a currency, the Economic Times reported citing sources.

The need for a new policy arises as the recommendation by a committee, headed by former finance secretary Subhash Garg in 2019, to impose a blanket ban on digital coins is now outdated, the report said.

Also Read| Short term vs long term: Which is better for investments in cryptocurrencies?

To understand and regulate crypto assets in India, the government has also asked companies to disclose their dealings in digital currency. The Union Finance Ministry is monitoring the growing volume of cryptocurrency trading in the country and is also discussing with stakeholders the potential supervisory risks involved, according to the ET report.

The new panel is likely to examine the working methods to operationalise the Reserve Bank of India’s (RBI’s) proposed digital rupee. 

RBI, however, has raised multiple concerns about cryptocurrencies and is waiting for the Union government’s decision on whether to ban or legalise them in India. Minister of State for Finance and Corporate Affairs, Anurag Thakur earlier held a meeting with crypto industry experts and bankers in this matter. 

Also Read: Bitcoin collapse explained: Why has the cryptocurrency nosedived?

Thakur and a dozen other names including a few representatives from the Opposition are being considered to part of the new committee on cypto, the report added.

Finance Minister Nirmala Sitharaman is likely to be briefed by officials about the latest developments in the cryptocurrency space later this month.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bitcoin collapse explained: Why has the cryptocurrency nosedived?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bitcoin has been volatile with a downward bias since Elon Musk withdrew from endorsing the cryptocurrency. Its price nosedived 30 percent on Wednesday dropping to $30,000 at one point, while slipping to more than three-month lows.

At one point on Wednesday, nearly $1 trillion was wiped off the market capitalization of the entire crypto market, according to data from CoinGecko. It would have continued the rollercoaster ride if not for some proponents coming forward to propel it on a rebound.

In the last 24 hours, Bitcoin touched an intraday high of nearly $40,000 and a low of $30,000, even from bitcoin standards, this was volatile. At the time of writing, it was trading at $39,588.

Bitcoin is still over 200 percent up from September ’20 and 27 percent so far this year. It had touched an all-time high of $63,000 in the second week of April and intra-day volatility has spiked to near 300 percent this week. So, what went wrong in April leading to May? Let’s find out.

How did bitcoin take such bad bruises?

Bitcoin’s stunning bull rally was a product of buying sparked by institutions, hedge fund managers, and banks. And now that institutional support has retreated.

Earlier this year, Elon Musk, Tesla chief, announced that Tesla has added bitcoin worth more than a billion dollars to its balance sheet. Following this, a lot of payment firms added crypto features, even Wall Street banks began offering cryptocurrencies to their clients.

However, last week Tesla reversed its decision to accept payments in bitcoin, citing environmental issues.

Bitcoin’s mining consumes more energy than some smaller nations like Malaysia consumes in a year. Even worse, they are mined using fossil fuels, so the more the bitcoin booms, the more energy it consumes. Read more about how much energy bitcoin consumes.

Musk did not sell Tesla’s bitcoin holdings though, a fact that he reiterated on Wednesday with the show of diamond hands.

Further, a report from JPMorgan suggested that institutional investors appear to be moving away from bitcoin — a fact that had fueled bitcoin’s surge when institutional interest in the digital currency became apparent.

In a report early Wednesday, JPMorgan said institutional investors are dumping bitcoin for gold — the traditional store of value. Bitcoin has aspirations to replace the traditional yellow metal as a hedge against inflation.

While some investors saw missed opportunities in the slide, others saw the rout as an opportunity to buy cheap.

Is the money flowing from bitcoin to altcoins?

Glassnode, a bitcoin data provider, had earlier indicated that a portion of bitcoin’s capital is rotating towards Ether and Dogecoin.

While Bitcoin’s market cap plunged from over $2 trillion to $700 billion, altcoins such as Ether and Dogecoin are enjoying a higher market cap.

Ether has soared over four times this year, and its market cap has risen to $380 billion. The market cap of Dogecoin has also surged to $60 billion in the past month, making it the fifth-largest cryptocurrency. Click here to know how Bitcoin’s bruises did not stop altcoins from surging.

While Ether has gained popularity and momentum because of underlying fundamental reasons, the same cannot be said for Dogecoin and Shiba Inu.

Is it a risk-off trade?

Cryptocurrency weakness is not an isolated case though, the trends seem to show that investors are moving away from speculative assets.

Investor sentiment is particularly weighed currently as global stocks are slipping, with concerns over an uptick in the US inflation haunting investors.

Tech and growth stocks that rose dramatically at the height of the pandemic last year have also seen a rollback. Nasdaq composite — Wall Street’s tech-heavy index — has fallen nearly 5 percent from April highs.

Cathie Wood’s Ark Innovation ETF is over 30 percent down from its February highs.

Per a CNBC report, the delayed deadline for tax payments could also have caused selling pressure as investors look for cash to pay off capital gains tax.

The plunge forced some to close leveraged positions in crypto derivatives, causing prices to fall further and knocked digital assets down into a lower trading range, traders said.

Weighing regulatory concerns

As cryptocurrency bull run blinded markets, regulatory scrutiny increased too. Analysts believe it could be a factor that could trigger another “crypto winter”.

While many analysts slated the crypto explosion of the past few months as unsustainable, the trigger for this week’s shake-out was China.

Earlier this week, China banned financial and payment companies from providing services related to cryptocurrency transactions. It also warned investors against speculative crypto trading.

While Beijing has taken steps before to block access domestically to cryptocurrency exchanges, its latest directive was broader. It is, however, worth noting that China is developing its own state-controlled cryptocurrency.

Besides, the new head of the US Securities and Exchange Commission (SEC) said more investor protection is required in the cryptocurrency market. He said, he views bitcoin as a ‘speculative’ asset and that SEC should be ‘technology-neutral’ when it comes to market-based innovations.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bitcoin and its background, explained

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The price of Bitcoin fell as much as 29 percent Wednesday after the China Banking Association warned member banks of risks associated with digital currencies. Other digital currencies suffered sharp declines as well.

Bitcoin’s volatility was on full display: The decline had narrowed to below 10 percent in early afternoon trading. Bitcoin has lost about 40 percent of its value since April 13 when it hit a high of more than $64,606 per coin.

Before Wednesday, Tesla’s decision to not accept the digital currency as payment for cars, along with concerns about tighter regulation of digital currencies, were major factors in the decline. The price is still up about 31 percent in 2021 and nearly 300 percent from a year ago.

Here’s a look at Bitcoin and digital currencies in general:

How Bitcoin works?

Bitcoin is a digital currency that is not tied to a bank or government and allows users to spend money anonymously. The coins are created by users who mine them by lending computing power to verify other user’s transactions. They receive Bitcoins in exchange.

The coins also can be bought and sold on exchanges with U.S. dollars and other currencies. Some businesses take Bitcoin as payment, and a number of financial institutions allow it in their clients’ portfolios, but overall mainstream acceptance is still limited.

Bitcoins are basically lines of computer code that are digitally signed each time they travel from one owner to the next. Transactions can be made anonymously, making the currency popular with libertarians as well as tech enthusiasts, speculators and criminals.

Bitcoins have to be stored in a digital wallet, either online through an exchange like Coinbase, or offline on a hard drive using specialized software. According to Coinbase, there are about 18.7 million Bitcoins in circulation and only 21 million will ever exist. The reason for that is unclear, and where all the Bitcoins are is anyone’s guess.

What happened to the price?

On Wednesday, a statement posted on the Chinese Banking Association’s website said financial institutions should resolutely refrain” from providing services using digital currencies because of their volatility.

Virtually every cryptocurrency fell after the industry group’s statement.

As of 1:10 p.m. eastern time Wednesday, Bitcoin was down more than 7 percent at around $40,310 per coin. Most cryptocurrencies lost between 7 percent and 22 percent of their value and shares of Coinbase dropped 5.4 percent.

The value of Bitcoin can change by thousands of dollars in a short time period. On the last trading day of 2020, Bitcoin closed just under $30,000. In mid-April, it flirted with $65,000. The price bounced around after that, with some notable swings, before taking a decidedly negative turn last week.

Doesn’t Elon Musk have a role here?

Yes, and a fairly big one. Musk announced in February that his electric car company Tesla had invested $1.5 billion in Bitcoin. In March, Tesla began accepting Bitcoin as payment. Those actions contributed to the run-up in Bitcoin’s price, and Musk also promoted the digital currency Dogecoin, which also spiked in value.

However, Musk reversed course in just a short time, saying last week that Tesla would stop accepting Bitcoin because of the potential environmental damage that can result from Bitcoin mining. The announcement sent Bitcoin falling below $50,000 and set the tone for the big pullback in most cryptocurrencies.

A number of Bitcoin fans pushed back on Musks reasoning. Fellow billionaire Mark Cuban said that gold mining is much more damaging to the environment than the mining of Bitcoin.

A 2019 study by the Technical University of Munich and the Massachusetts Institute of Technology found that the Bitcoin network generates an amount of CO2 similar to a large Western city or an entire developing country like Sri Lanka. But a University of Cambridge study last year estimated that on average, 39% of proof-of-work crypto mining was powered by renewable energy, primarily hydroelectric energy.

But some companies are using Bitcoin?

The digital payment company Square and its CEO Jack Dorsey also the CEO of Twitter have been big proponents of Bitcoin. Overstock.com also accepts Bitcoin, and in February, BNY Mellon, the oldest bank in the U.S., said it would include digital currencies in the services it provides to clients. And Mastercard said it would start supporting select cryptocurrencies on its network.

Bitcoin has become popular enough that more than 300,000 transactions typically occur in an average day, according to Bitcoin wallet site blockchain.info. Still, its popularity is low compared with cash and credit cards.

There is scepticism around Bitcoin?

Yes, plenty of it. Tracking Bitcoin’s price is obviously easier than trying to figure out its value, which is why so many institutions, experts and traders are skeptical about it and cryptocurrency in general. Digital currencies were seen as replacements for paper money, but that hasn’t happened so far. Federal Reserve Chair Jerome Powell has said the central bank prefers to call crypto coins crypto assets, because their volatility undermines their ability to store value, a basic function of a currency.

While some banks and financial services companies are getting in on it, others are staying away.

Could a digital currency sell-off cause widespread damage?

Regulators aren’t very worried about a possible crash in digital currencies dragging down the rest of the financial system or economy.

Even with the recent sell-off, digital currencies have a market value of about $1.5 trillion, according to the website coinmarketcap.com. But that pales compared with the $46.9 trillion stock market, $41.3 trillion residential real estate market and nearly $21 trillion Treasury market at the start of the year.

The European Central Bank said Wednesday that the risk of cryptocurrencies affecting the financial system’s stability looks limited at present. In large part, that’s because they’re still not widely used for payments and institutions under its purview still have little exposure to crypto-linked instruments.

Earlier this month, the Federal Reserve said a survey of market contacts found roughly one in five cited cryptocurrencies as a potential shock to the system over the next 12 to 18 months. That’s a turnaround from the fall, when a similar survey found none mentioning cryptocurrencies.

How much oversight is there?

Washington officials have been talking about regulating digital currencies more, and worries about a heavier hand have played a role in the recent swoon in prices.

Gary Gensler, who took over as chairman of the Securities and Exchange Commission last month, has said that cryptocurrency markets would benefit from more oversight to protect investors.

In a hearing before the Houses financial services committee earlier this month, Gensler said neither the SEC nor the Commodity Futures Trading Commission, which he used to head, has a regulatory framework for trading on cryptocurrency exchanges yet. He said he thought Congress would ultimately have to address it because “there’s really not protection against fraud or manipulation.

How Bitcoin came to be?

It’s a mystery. Bitcoin was launched in 2009 by a person or group of people operating under the name Satoshi Nakamoto. Bitcoin was then adopted by a small clutch of enthusiasts. Nakamoto dropped off the map as bitcoin began to attract widespread attention. But proponents say that doesn’t matter: The currency obeys its own internal logic.

In 2016, An Australian entrepreneur stepped forward and claimed to be the founder of Bitcoin, only to say days later that he did not have the courage to publish proof that he is. No one has claimed credit for the currency since.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Shiba Inu versus Dogecoin: Key things to know before investing in these cryptocurrencies

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shiba Inu and Dogecoin, both meme-currencies, continue to grab headlines amid a sharp spike in interest in cryptocurrencies. While Dogecoin was created in 2013, Shiba Inu is fairly new and came into being only in 2020.

Let’s understand the fundamentals of these meme coins in detail:

The development

Dogecoin has been developed using the same technology as Bitcoin. While Shiba Inu tokens are powered by Ethereum. Fungible tokens like Shiba Inu are ERC-20 tokens and non-fungible tokens (NFTs) use the ERC-721 token standard of the Ethereum platform.

The use case

According to Sathvik Vishwanath, CEO and Co-Founder of Unocoin, Dogecoin started as a meme coin and established itself to some extent as a viable means to do payments online even for the smallest of transactions which the well-known coins like bitcoin and ether failed miserably due to their high transaction fees that got increased due to its own popularity.

On the other side, Vishwanath said, the world still needs an experimental meme coin and we have Shiba INU filling that gap.

“Shiba INU appears to be working up in price more due to rumors than utility while Doge appears to just have found an on the ground use case,” he added.

The risk factor

Shiba Inu and Dogecoin both are meme coins so they can be extremely volatile at times.

Additionally, the most significant risk in investing in any cryptocurrency is that they are neither regulated by RBI nor have a statutory body to oversee their operations. At times, the central bank has issued several warnings for crypto traders of possible losses due to adverse developments.

Where can one buy them?

As per experts, cryptocurrency exchange platforms such as Coinbase, Robinhood, and Kraken allow one to buy Dogecoin. To buy Dogecoin on these platforms, investors are required to download a cryptocurrency wallet.

Besides, users can also mine a Dogecoin. Those who have a powerful computer setup can process other dogecoin transactions and get these coins as payments.

On the other hand, users can trade the Shiba Inu coin at WazirX. Other platforms such as Uniswap and the web version of CoinDCX have also listed Shiba Inu tokens. Uniswap is a decentralized trade (DEX) on Ethereum’s network that allows buying and selling cryptocurrencies for ETH and other Ethereum-based tokens. However, it must be noted that these coins cannot be purchased in Indian rupees (INR) but only in USDT/BUSD.

What should investors do?

According to Ashish Singhal, CEO and Co-founder at CoinSwitch Kuber, an investor must do thorough research on the coin’s fundamentals and take a deep dive into the use case they are solving.

“Factors like risk management must also be taken into account. That said, one should only put in the amount they are fine losing in these coins,” Singhal suggested.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Explained: How much energy bitcoin consumes and why everyone, from Musk to Yellen, is worried about it

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bitcoin fell nearly 25 percent from its all-time high of $64,000 after Tesla’s Elon Musk on Wednesday said that the company will be halting purchases of vehicles using bitcoin.

Initially accepting bitcoins for purchase, Musk in his tweet said that the increased use of fossil fuel for bitcoin mining is one of the reasons for halting purchases via bitcoin.

However, he clarified that they intend on resuming it once bitcoin mining transitions to more sustainable energy. He added that they will look for cryptocurrencies that use less than 1 percent of bitcoin’s energy per transaction.

Not just Musk, US Treasury Secretary Janet Yellen too warned on the environmental impact of cryptocurrencies.

If you look at the usage of electricity by bitcoin, it uses more energy than entire countries like Sweden and Malaysia.

CNBC-TV18’s Manisha Gupta get more details on the energy usage of bitcoins.

Watch the video for more.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow