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A bolt from the blue for Bitcoin cryptocurrency holders. One of the most popular and richest people in the world, Elon Musk just announced that Tesla is pulling out of the “Tesla for Bitcoins” idea! It’s all due to climate concerns. What exactly?

Cryptocurrency miners the reason for Tesla’s withdrawal

According to foreign media reports, Tesla is withdrawing support for Bitcoin because it is concerned about the increase in the use of fossil fuels to mine the virtual currency. This is strange news, as a few weeks earlier Elon Musk was hailed as the savior of Bitcoin and a forerunner in another branch of business – the ability to pay with Bitcoins for a Tesla car. Today, this is outdated as everything has been withdrawn due to climate concerns. In a statement posted on Twitter, the entrepreneur explains that Tesla is “concerned about the rapid increase in the use of fossil fuels, especially coal, to mine bitcoin. Cryptocurrencies are a good idea with a promising future, but their use can come at a significant cost to the environment,” – the statement read. 

New catastrophic phenomenon on the planet – Musk earthquake

Exchanges that trade electronic currency reacted momentarily. As we can see, the exchange rate increased rapidly by 10 percent. Today, after Musk withdrew from the decision, the situation is reversed, and bitcoin is diving – at the time of writing this text, the quotes were lower by 11 percent. As recently as Wednesday, one coin was valued at more than 56 thousand dollars, on Thursday it was only 49.5 thousand dollars. 

Is only bitcoin falling?

Many of the available cryptocurrencies on the market have ups and downs, all through fluctuations associated with the listing of the largest of them – Bitcoin. It’s no different for another currency called dogecoin, the meme dog currency. Why am I mentioning it? Because not so long ago it was “supported” by Elon Musk, who led to its several percent decline. However, as reported by analysts dogecoin has a chance to make up for the losses.

The whale effect

As you can see from this example, cryptocurrency whales control the market and any minimal moves they make can affect cryptocurrency rates. In this case, we are dealing with a powerful wave that is unknown if it will reach the shore of cryptocurrency holders and cause destruction like a tsunami – time will tell.