Elon Musk's Suspension Of Bitcoin Use To Buy Its Cars Wipes Off $365 Bn From Crypto Market

On Wednesday, Tesla's Chief Executive Elon Musk announced that the company will no longer accept bitcoin for car purchases. Notably just two months ago, Tesla began accepting the world's largest cryptocurrency for buying its cars.

The decision to suspend bitcoin's use for payment has been taken citing long-brewing environmental concerns for a swift reversal in the company's position on the cryptocurrency. "Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment," he tweeted.

Also, the company revealed that before accepting bitcoin as a payment method for buying its electric vehicles in March, it bought $1.5 billion of bitcoin, leading to sharp gains of close to 20% in the cryptocurrency.

After Musk's tweet, the largest digital token bitcoin fell over 10 percent and as per Coindesk data trades at $51,349, with 24 hour change in % being over 10. In line other cryptos, including ethereum XRP, Stellar and Dogecoin also traded weak, with maximum drop in Dogecoin of over 14 percent (24 hour change)

Now amid the sharp decline in the value of different cryptocurrencies, as much as $365 billion wiped off cryptocurrency market.

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