Tesla CEO Elon Musk said the company will likely resume accepting bitcoin for vehicle purchases.
“It appears that bitcoin is shifting a lot more towards renewables and some of the heavy coal power plants that have been used… have shut down, especially in China,” Musk said on Wednesday to The B-Word conference, an event organized by the Crypto Council for Innovation.
“I want to do a little more due diligence to confirm that the percentage of renewable energy use is most likely at or above 50% and that there is a trend to increase that number. If so, Tesla will most likely increase adoption of bitcoin.” he said.
In May, Musk went on to say: Twitter that the company would suspend vehicle purchases with bitcoin over concerns about the “rapidly increasing use of fossil fuels for bitcoin mining.”
From that moment on, Beijing has taken a hard line on cryptocurrencies, expelling the country’s crypto miners, who have since gone on patrol elsewhere. New data from Cambridge University shows that many miners are heading to the US, which is now the second largest destination for the world’s bitcoin miners.
The US is home to some of the cheapest energy sources in the world, which are more often than not renewable. Marathon Digital’s Fred Thiel said most miners new to North America will be powered by renewable energies, or gas offset by renewable energy credits, and Compass CEO Whit Gibbs estimates that bitcoin mining in the US will cost more than 50% is powered by renewable energy sources.
“In the long run, renewable energy will be the cheapest energy, but it won’t happen overnight,” Musk said. “But as long as there’s a conscious and determined, real effort from the mining community to move to renewables, Tesla can obviously support that.”
Bitcoin was trading nearly 8% higher on Wednesday.