Popular cryptocurrencies rose more on Wednesday, after Elon Musk first revealed that his private rocket company SpaceX holds bitcoin, and Tesla will “most likely” continue to accept it as payment for its electric cars.
Musk laid out his investments in cryptocurrencies during a panel at The B Word web conference hosted by the Crypto Innovation Council, along with Jack Dorsey, CEO of Twitter and Square Payments Group and CEO of Ark Invest Cathie Wood.
Musk said he personally held bitcoin, ethereum and lower dogecoin, while two of his companies, SpaceX and Tesla, owned bitcoin – and will remain so.
“We don’t sell any bitcoin nor do I sell anything in person,” he said. “I wish bitcoin worked.”
Responding to critics who encourage and profit from the wild changes in the price of crypto with bold statements on Twitter, where he has more than 58 million followers, Musk reiterated his commitment to the digital token: “If the price of Bitcoin falls, I lose money. I may pump, but I don’t throw, ”he said.
Bitcoin rose more than 5 percent, to $ 31,600, while ethereum rose more than 7 percent, to $ 1,900.
During Wednesday’s discussion, Musk, Dorsey and Woods also touched on the challenges associated with bitcoin scaling as well as environmental impacts.
Bitcoin and other digital coins experienced a dizzying rise from December to early this year, but much of those gains have been wiped out lately as regulators orbit the freewheel market.
In February, bitcoin took off after Musk discovered Tesla had it plowed $ 1.5 billion its cryptocurrency reserves and said the company planned to accept cryptocurrency payments for its electric cars. However, he reverse course a few months later in May, citing environmental concerns about a mechanism used to check bitcoin transactions, known as bitcoin mining.
Critics of bitcoin have criticized the use of fossil fuels as an energy source for an energy-hungry currency. But Musk on Wednesday recommended that hydroelectric, geothermal or nuclear energy be used more in the future, and even suggested that one day a futuristic “space heater” could be used to dig up cryptocurrencies.
“Bitcoin seems to be moving more towards renewables and many of the coal over-exploitation plants used appear to be closed, especially in China,” Musk said, adding that he intends to confirm that at least 50 per cent of bitcoin mining’s energy use it was renewable.
“There is a trend of increasing that number. If so, Tesla would continue to accept bitcoin, ”he said.
A sports shirt with a short color and a long beard, Dorsey said he hopes bitcoin will “create world peace”. Last week, he announced Square has launched a platform for developers to create “decentralized financing” projects built on bitcoin, complex financial products denominated in cryptocurrency that have cut traditional intermediaries.
Woods, meanwhile, called on companies to add bitcoin to their balance sheets, arguing it would act as a “protection against inflation.”