With Tesla's decision to pause Bitcoin payments for vehicle purchases sparking serious discussions about potential losses for the business, a recent study suggests that the company could have amassed 160,000 Bitcoin worth over $17 billion today.
The $17 Billion Scenario
Tomas Grief, Chief Product Officer at Brainns, proposed an intriguing scenario. He claims that if Tesla had accepted just 2% of its sales since 2021 in Bitcoin and had not sold its assets, the company's BTC funds would today amount to approximately 160,000 BTC.
On the day Tesla paused BTC payments, May 12, 2021, the price of Bitcoin was $56,667, and then dropped nearly 39% within 11 days. The current price of Bitcoin hovers around $108,826, amounting to an increase of 88.9% year-over-year. Therefore, the current value of the accumulated 160,000 BTC would be over $17 billion. This represents 42.5% of Tesla's overall profit, which was about $40 billion since 2021.
Reasons for Pausing Bitcoin Payments
Elon Musk's decision to halt acceptance of Bitcoin was driven by increasing scrutiny of the environmental sustainability of the cryptocurrency, particularly its negative impact on the environment. The primary reasons include:
- High energy consumption, primarily from fossil fuels, - Significant carbon emissions and electronic waste, - Concerns regarding water and land usage.
While Bitcoin miners are gradually shifting towards renewable energy, sustainability issues remain unresolved, creating divisions in the tech community regarding the long-term viability of the asset.
Could Tesla Reconsider Accepting Bitcoin?
Currently, Tesla has not resumed Bitcoin acceptance for its vehicles. However, recent comments from Elon Musk hint at a renewed interest in cryptocurrencies. His new political group, the 'America Party,' is accepting Bitcoin donations, and his recent posts indicate that 'fiat is hopeless.' Nevertheless, these remarks are personal opinions and do not reflect official corporate decisions from Tesla Inc.
As of now, Tesla does not accept Bitcoin, but the discussion around its potential assets based on previously adopted policies continues to intrigue and provoke conversation within the crypto community.
