The price of Bitcoin soared after Elon Musk said his electric car maker Tesla would “very likely” start accepting cryptocurrency again.
This is the tech entrepreneur’s latest change of course – after Tesla said earlier this year that it would accept Bitcoin for vehicle purchases, but that in May it would stop doing so.
Bitcoin rose 8% to over $ 32,000 on comments Wednesday night, after experiencing further volatility earlier this week that saw it drop below $ 30,000.
Tesla’s decision to stop accepting bitcoin had been motivated by concerns about how cryptocurrency is “mined” using large amounts of energy produced from fossil fuels.
But Mr Musk put on a more positive note when he spoke about the reasons for the move at a conference.
“I wanted a little more due diligence to confirm that the percentage of renewable energy use is most likely equal to or equal to
above 50%, and that there is a tendency to increase that number, and if it does, Tesla would start accepting bitcoin again, ”he said.
“The answer is most likely that Tesla would start accepting bitcoin again.”
“Tesla’s mission is to accelerate the advent of sustainable energy.”
“We can’t be the company doing this and not be doing proper due diligence when it comes to bitcoin’s power consumption.”
Bitcoin saw an increase in value earlier this year, but after peaking at $ 65,000 it went through a volatile period – thanks to Tesla’s shift in stance as well as growth threat of regulation in China.
Figures published by the Financial Conduct Authority last month showed an estimated 2.3 million UK adults now own crypto-assets such as Bitcoin – despite warnings about the risks involved.