Cryptocurrency Analysis

[IFX_Selena]

Kevin O'Leary explains why Tesla has given up on accepting Bitcoin for car purchases



The news that Tesla is refusing to accept bitcoin for electric car purchases sounded like a bolt from the blue a couple of months ago. From a company of this level, no one expected that it would reverse its decision just a couple of months after its adoption. Nevertheless, Tesla has suspended this method of transactions, and the famous Canadian businessman and investor Kevin O'Leary explains why the company did just that. According to O'Leary, Tesla investors are to blame for this, who pressed Musk on this issue. Recall that this is not the first time that Musk has been pressured because of his contradictory and thoughtless actions and statements. Earlier, investors openly expressed dissatisfaction with the uncontrolled Twitter posts of the company's CEO, since, in their opinion, they lead to a drop in the value of Tesla shares and, accordingly, to losses. It is hard to disagree with this opinion, since the last drop in bitcoin quotes also provoked a serious drop in Tesla shares. Thus, the relationship between Tesla shares and Bitcoin is obvious. According to O'Leary, Tesla shareholders don't think accepting Bitcoin as payment for cars is a wise decision. O'Leary himself approves of Tesla's refusal to accept bitcoins for purchases, as he believes that such companies that promote "green" energy should not encourage the emission of tons of carbon dioxide into the atmosphere. Recall that the mining of bitcoin mainly uses energy from burning coal. Thus, the mining of cryptocurrencies (not just bitcoin) is highly polluting.

At the same time, sociological studies show that the majority of Americans who owned or own cryptocurrencies acquired them in order to be able to make transactions. More than 90% of those surveyed intend to use bitcoin in the future to purchase goods and services. The survey was conducted among 8,000 Americans and shows that mostly young men with an average income level own cryptocurrency in the United States. Bitcoin remains the most popular cryptocurrency according to the survey, as 82% of those surveyed said they owned or own "digital gold". The Americans also told in what areas they used or are going to use bitcoin. These are the spheres of travel, real estate, various professional services, the purchase of various equipment or furniture, as well as the sphere of financial services. Thus, according to the survey, we can conclude that ordinary people are beginning to look at bitcoin not only as an investment instrument, but also as a means of calculation. However, the survey, of course, does not fully reflect the real picture of the state of affairs, since its sample is too small. Most studies show that Bitcoin remains primarily an investment vehicle, while Ethereum is much more commonly used for payment.





Paolo Greco
Analytical expert
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