Does Elon Musk Have a New Enemy? Binance CEO Taunts Musk Over Tesla Bitcoins

Billionaire Changpeng Zhao pointed out Elon Musk's hypocrisy regarding the bitcoins owned by Tesla.
Does Elon Musk Have a New Enemy? Binance CEO Taunts Musk Over Tesla Bitcoins
Image credit: Getty Images vía BI

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
Entrepreneur Staff
3 min read
This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

Elon Musk is embroiled in a new controversy and it seems that a new declared enemy has been named. Billionaire Changpeng Zhao, CEO of Binance, made a scathing comment mocking the Tesla CEO's inconsistencies regarding Bitcoin.

Related: Presenting 'StopElon', a Cryptocurrency Against the Influence of Musk in the Market

On the one hand, Tesla is the second largest holder of Bitcoin in the world, and on the other it stopped accepting them as payment for their negative impact on the environment. The contradiction did not go unnoticed by the founder of one of the world's leading cryptocurrency exchanges, who took to Twitter to point it out.

“When you use electricity to run cars, it's environmentally friendly. When you use electricity to run the most efficient financial networks in the world, it's an environmental concern,” Zhao tweeted.

Related: Police Raided a Warehouse in Search of Drugs ... and 'Found a Bitcoin Mine'

Zhao's message refers to a recent controversial decision by Elon Musk. In early May, the businessman announced that Tesla would no longer accept bitcoin as payment for its electric cars.

“Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for mining and transactions, especially coal, which has the worst emissions of any fuel,” Musk posted on Twitter. "Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at a great cost to the environment," he added.

Related: Apparently, Tesla Earns More With Bitcoin Than With the Sale of Its Own Cars

However, the CEO of SpaceX clarified that his company will not get rid of the cryptocurrencies it already owns. In February of this year, Tesla invested $1.5 billion in Bitcoin, making it the second largest holder of these in the world, only behind MicroStrategy, a company that offers data software.

“Tesla will not be selling Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin's energy/transaction," Musk wrote.

The Tesla news caused an alarming crash in the price of Bitcoin and virtually all cryptocurrencies. However, a few days ago, another tweet from Elon Musk made digital currencies rebound, noting that he is already working on finding solutions to reduce energy expenditure in Bitcoin mining and make it more sustainable for the planet.

“Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising,” Musk tweeted on May 24.

Related: Should I Sell or Buy Cryptocurrencies? Bitcoin Has Lost More than Half its Value in a Month and a Half

According to a study by the University of Cambridge cited by BBC, the digital currency uses 121.36 terawatt hours per year, which exceeds the energy expenditure of countries such as Argentina and Norway.

  

  

  

More from Entrepreneur
Our Franchise Advisors are here to help you throughout the entire process of building your franchise organization!
  1. Schedule a FREE one-on-one session with a Franchise Advisor
  2. Choose one of our programs that matches your needs, budget, and timeline
  3. Launch your new franchise organization
Entrepreneur Insider members enjoy exclusive access to business resources for just $5/mo:
  • Premium articles, videos, and webinars
  • An ad-free experience
  • A weekly newsletter
  • A 1-year Entrepreneur magazine subscription delivered directly to you
Whether you want to learn something new, be more productive, or make more money, the Entrepreneur Store has something for everyone:
  • Software
  • Gadgets
  • Online Courses
  • Travel Essentials
  • Housewares
  • Fitness & Health Devices
  • And More

Latest on Entrepreneur