The crypto market has shed off about 10% of its value, with Bitcoin dropping below $50k. This followed a tweet by Elon Musk that Tesla would no longer be accepting Bitcoin payments. Musk tweeted that the company was concerned about Bitcoin’s increasing carbon footprint.
However, this move has been countered by fellow billionaire Mark Cuban. The Dallas Mavericks owner argued that the adoption of cryptocurrencies has a lot more benefits to society than the legacy financial system.
Mark Cuban further added that if Bitcoin replaces gold as a store-of-value, it will go a long way in saving the environment.
We at https://t.co/VUydpLFzGh will continue to accept BTC/Eth/Doge because we know that replacing Gold as a store of value will help the environment https://t.co/bs7NvnJY8A and https://t.co/ELhbuLOBRV shrinking big bank and coin usage will benefit society and the environment https://t.co/zu08F0STEQ
— Mark Cuban (@mcuban) May 12, 2021
The move by Tesla comes at a time when the carbon credits market is expected to grow exponentially. This is after President Biden set 2030 as the goal for zero net emissions for the United States. Tesla is also one of the companies that have pending applications with the United States Environmental Protection Agency in the electric car category.
As such, the move by the company can be understood in the context of taking advantage of the carbon credits market. Data from Refinitive shows that in 2020, the carbon credits market grew by 20% to hit a value of $272 billion.
It is also understandable that Elon Musk did not explicitly bash Bitcoin. His tweet only indicated that the company was pausing until Bitcoin becomes environmentally friendly. Musk also added that the company would not be selling any of its Bitcoin holdings.