World’s largest cryptocurrency, Bitcoin, crosses the $50000 mark, recovering from the 17% plunge it suffered after Elon Musk tweeted that Tesla Inc would no longer accept the cryptocurrency as payment for its car. Musk had tweeted that Tesla was concerned about the increased use of fossil fuels for Bitcoin mining and transactions and would not be accepting.
Consequently, within two hours of the tweet, bitcoin dropped to its lowest since March 1, from around $54,819 to $45,700. But, the cryptocurrency was able to regain about half of the drop in the Asian session. It traded last at $51,099.
On February 8, Tesla had announced that it had bought $1.5 billion of bitcoin and would be accepting the crypto currency as payment for cars. This had led to a surge in the prices of the digital token. However, Bitcoin is currently 30% higher than before Tesla’s February announcement.
Musk has clarified that Tesla would start accepting bitcoin once it shifts to a more sustainable energy.