Bitcoin fell nearly 25 percent from its all-time high of $64,000 after Tesla’s Elon Musk on Wednesday said that the company will be halting purchases of vehicles using bitcoin.

Initially accepting bitcoins for purchase, Musk in his tweet said that the increased use of fossil fuel for bitcoin mining is one of the reasons for halting purchases via bitcoin.

However, he clarified that they intend on resuming it once bitcoin mining transitions to more sustainable energy. He added that they will look for cryptocurrencies that use less than 1 percent of bitcoin’s energy per transaction.

Not just Musk, US Treasury Secretary Janet Yellen too warned on the environmental impact of cryptocurrencies.

If you look at the usage of electricity by bitcoin, it uses more energy than entire countries like Sweden and Malaysia.

CNBC-TV18’s Manisha Gupta get more details on the energy usage of bitcoins.

Watch the video for more.

(Edited by : Bivekananda Biswas)

First Published:May 14, 2021 5:18 PM IST