Bitcoin Investors Lose Over $5,000 after Elon Musk, Tesla Controversial Decision

Bitcoin Investors Lose Over $5,000 after Elon Musk, Tesla Controversial Decision

- After Elon Musk announced Tesla won't accept bitcoin as payment, crypto investors lost over $5,000

- The announcement crash bitcoin price as some investors sold their coins immediately after the report

- Tesla had stated that due to the impact bitcoin mining has on the environment, it won't accept the crypto again

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After Tesla founder, Elon Musk, stated that his automobile company would no longer accept bitcoin as payment for its vehicles, bitcoin investors lost over $5,000 in their investment. had earlier reported that Musk said due to its negative impact on environment, Tesla would drop bitcoin from its payment option. It was stated that fossil fuels used to mine bitcoin is damaging the environment.

It was stated that:

"Cryptocurrency is a good idea on many levels, and we believe it has a promising future, but this can not come at a great loss to the environment."

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A statement published by Musk disclosed that the auto manufacturer is planning to replace bitcoin with another cryptocurrency that uses renewable energy or just one percent energy that bitcoin uses.

This decision has affected the price of bitcoin, as investors holding bitcoin lost over $5,000 within hours of the announcement. Prior to Musk's tweet, the crypto was trading around $52,984 before it crashed to $47,720 after the disclosure.

Bitcoin Investors Lose Over $5,000 after Elon Musk, Tesla Controversial Decision
Elon Musk, the founder of Tesla. Photo: Britta Pedersen-Pool
Source: Getty Images

The price of the most popular cryptocurrency is now trading at $50,347.95 per coin as at the time of filing this report. According to Coindesk, bitcoin had dropped by 10.42% in the last 24hours.

The market capitalisation of bitcoin also crashed from over one trillion dollar to $942.97 billion after the billionaire released the statement.

Meanwhile, had previously reported that Nigerians in diaspora are not sending money home as they use to. The amount sent to their families in Nigeria has declined.

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According to the World Bank, remittance flow into Nigeria dropped by 27.7% last year, with Nigeria being the worse hit among its notable peers. The country was the only one that recorded drop.

Ghana, Kenya, Mozambique and others recorded growth in their remittance flow. And it was stated that Nigeria's low remittance affected the growth of Africa's remittance.


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