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Musk Questioning Bitcoin, and Tesla Model Cancellation

Elon Musk made it clear on twitter that he has not fully bought into the bitcoin hype, tweeting that currency is simply a means to an end and that Bitcoin and Ethereum “seem high”. This came as a surprise to some who assumed that Tesla’s recent 1.5 Billion USD Bitcoin purchase was an endorsement of the currency by Musk.  

Musk not Fully Convinced of Crypto-Currency

Bitcoin’s rise has been put into question by Elon in several of his new tweets in which he stated that the currency is “almost as bs as fiat money”. Seemingly going against Tesla’s investment in the currency, Musk has distanced himself from the deal and questioned the high value of the currency. 

Ethereum and Bitcoin are the two biggest cryptocurrencies, and both have been rising exponentially over the course of this year, causing a wide range of reactions from analysts and investors alike. 

Musk also tweeted a funny video titled: “Bitcoin Explained”, mocking the alternate currency hype. The video, which takes place in 698 BC, shows someone trying to buy ratskins and lemonade from a shop using a piece of gold. The shop owner rejects the currency because of its impracticality, preferring to bargain instead, while the customer tries to convince him that this is the currency of the future. 

This video reflects Elon’s view that “money is just data that allows us to avoid the inconvenience of bartering”, and this data is constantly evolving to reduce “latency and error”..

CryptoCurrency on the Verge of a Crash?

Criticism from the likes of Elon Musk and Bill Gates have set Bitcoin on a downwards trajectory, dropping to as low as $45,000 USD on Tuesday. Speculation around the practicality and worth of the currency have flared up following this drop, and negative press ensued.

Top US government officials even warned about the risks associated with bitcoin, with Treasury Secretary Janet Yellen calling the currency “extremely inefficient” and warning about a rise in crypto-currency transactions related to illegal activities. 

Treasury Secretary Janet Yellen

The Environmental impact of the currency was also a subject of scrutiny for bitcoin, with some claiming that the immense electricity usage required to mine the digital currency can be detrimental for the environment.

Base Versions of Model Y no Longer for Sale

Tesla is no longer selling one of its cheapest SUV models, removing it from the online store. This follows recent pricing changes to some of its other models in an attempt to make the brand more affordable. No official reason has been given for the cancellation yet. 

Tesla Model Y

Vehicle deliveries have been ramping up since the beginning of last year, so changes to the models are to be expected over the course of this year in order to make the company more profitable.

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