Elon Musk’s Major Issue with Bitcoin and Which Crypto asset He Favors
The connection between Elon Musk and BTC shifted in May 2021 when he announced that Tesla would cease accepting the crypto asset for the purchase of vehicles due to concerns about the environment.
This declaration followed mere months after Tesla had initiated BTC acceptance, illustrating the unpredictability of the company’s position. Not much has evolved since then.
Musk’s choice highlighted the increasing examination of
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energy consumption, especially its dependence on fossil fuels. Even with the halt, Tesla kept its BTC assets, but will Tesla explore other cryptocurrencies?
Here are the ones that are likely contenders.
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Elon Musk On Cardano, The Academic Distributed database
In 2021, when Musk criticized Bitcoin, Cardano experienced a surge past its previous all-time high of $3.00, marking a significant achievement for the digital currency. Currently trading at approximately $0.68, Cardano was once perceived as a sluggish project, but its focus on academic principles and dedication to underdeveloped areas like Africa is now yielding positive outcomes.
Elon Musk, who heads the Department of Government Efficiency, has expressed interest in utilizing blockchain technology to improve transparency and efficiency. Cardano’s ability to scale and its energy efficiency make it an ideal candidate for these kinds of projects.
BREAKING: Charles is confident @elonmusk will discuss #Cardano soon
— Leader Alpha (@LeaderAlphaNews) February 19, 2025
Charles Hoskinson, the founder of Cardano, has conveyed hope about this potential strategic alliance, asserting that Cardano would be prepared to facilitate government operations if necessary.
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The Most Successful Blockchain: Ethereum
Ethereum’s early entry into smart contracts enabled it to create the most effective distributed ledger globally. Although BTC excels in one area, better than any other cryptocurrency, Ethereum endeavors to tackle 12 spectacular tasks that Bitcoin cannot achieve, including DeFi, DAOs, and Proof of Stake.
Additionally, ETH founder Vitalik Buterin expressed his disapproval of Bitcoin’s resource-intensive mining activities: “Bitcoin mining represents a significant waste of resources, even if you don’t consider pollution and carbon dioxide a concern,” Buterin remarked to IEEE Spectrum.
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At this point, Musk has not publicly commented about ETH for 2024 or 2025. While he has indicated owning ETH alongside BTC and Dogecoin in the past, he has not made any current statements or endorsements regarding ETH.
Elon Musk: Bitcoin Remains a Strong Competitor
In an interview with CNBC, Morgan Creek Digital Founder Anthony “Pomp” Pompliano presented a compelling argument: Notice what individuals do, not what they claim.
Elon Musk holds billions in BTC. He isn’t liquidating, despite having realized significant profits from BTC in 2021.
Pomp also tweeted that 75% of Bitcoin block rewards utilizes renewable energy. Undoubtedly, BTC has progressed towards being more environmentally friendly, but as BTC prices increase, so does its energy consumption.
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Key Takeaways
- Elon Musk has not altered his position on BTC. Since 2021, the Tesla head has maintained that the company will not allow car purchases using Bitcoin.
- Charles Hoskinson, the founder of Cardano, has shared positive outlook regarding this potential strategic alliance.
- Currently, the conversation about the role of crypto asset in America’s financial future is just beginning.
The article Elon Musk’s Major Concern with Bitcoin And Which Digital currency He Favors first appeared on 99Bitcoins.
