Does Elon Musk Have a New Enemy? Binance CEO Taunts Musk Over Tesla Bitcoins
Grow Your Business, Not Your Inbox
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.
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.
When you use electricity to run cars, it's environmentally friendly.- CZ Binance (@cz_binance) May 31, 2021
When you use electricity to run the most efficient financial networks in the world, it's an environmental concern.
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.
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.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP- Elon Musk (@elonmusk) May 12, 2021
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.
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.