Which Cryptocurrency Will Tesla Accept Next?

By in Cryptocurrency on
7 Minute Read
Tesla and Bitcoin

For better or worse, Tesla CEO Elon Musk is one of the most powerful people on the planet. Anyone worth billions of dollars and that leads a company as big and bold as Tesla will always hold some amount of power, of course, but Musk’s ability to influence financial markets is unique.

Earlier this year, Bitcoin exploded. The world’s most well-known cryptocurrency climbed all the way over $64,000 in value back in the middle of April, with no end in sight. In February, Tesla announced that it had purchased $1.5 billion in Bitcoin with plans to invest it in more Bitcoin or other cryptos in the future.

Musk made the announcement that Tesla would immediately begin to accept Bitcoin as a payment method for any of its products, which was a revolutionary move that many saw as something that legitimized cryptocurrency as a whole. That support from Musk and Tesla helped cause prices to skyrocket.

However, it hasn’t taken long for things to trend sharply in the opposite direction. On May 12, Musk abruptly announced that his company would stop accepting Bitcoin as a payment method due to the company’s alleged concerns about the negative impacts on the environment caused by mining crypto.

Musk added that Tesla will also not be selling any of the Bitcoin the company had purchased several months ago. Instead, he says Tesla plans to begin accepting it as a payment method as soon as “mining transitions to more sustainable energy.” He also claimed that the company would be looking at other cryptocurrency options that don’t rely so heavily on fossil fuels.

Right now, you can wager on the next form of cryptocurrency Tesla will accept over at MyBookie. There is certainly the chance that Bitcoin will regain its spot as Tesla’s crypto of choice, but Ethereum is actually the early leader at +120. Which crypto will Tesla accept next?

What Happened to Bitcoin?

As mentioned, Musk has the rare ability to completely inflate or tank the value of a crypto, like Bitcoin, as he sees fit. Bitcoin’s price plunged by about 17 percent immediately after Musk declared Tesla would no longer accept the crypto as a banking method.

Bitcoin’s price rebounded a bit after that, but it is still far south of the heights it reached earlier in the year. As of this writing, the price of Bitcoin is sitting at $38,460 but we’ve also included a live Bitcoin price ticker below.

The Current Value of Bitcoin

Coin

Coin

Some wondered whether Musk had really done his homework with regard to Bitcoin’s mining methods before getting into bed with the crypto. Tesla is known for being sensitive to environmental issues and impacts, while cryptocurrency mining requires all sorts of unnatural energy use.

Mining Bitcoin Uses Fossil Fuels?

As is the case with any crypto, Bitcoin is a completely virtual currency. It’s an entirely non-tangible asset you can use as money to purchase a variety of things. Tesla was the first major auto manufacturer to accept Bitcoin, which was a big deal.

The idea of “mining” for Bitcoin conjures up a mental image of someone going deep into the earth in search of something valuable. However, the act of mining Bitcoin or any crypto does require electricity.

The University of Cambridge Centre for Alternative Finance conducted a study that found that using or mining Bitcoin uses about 13.81 gigawatts of electricity every year. That’s up from about 2.25 gigawatts per year back when Bitcoin’s energy consumption was tracked for the first time nearly six years ago.

One gigawatt can power over 3.1 million solar panels, which should give you an idea as to just how much power is in nearly the nearly 14 gigs used by Bitcoin on a yearly basis. Coal is primarily used to generate electricity in the United States. On average, you would require nearly 16 million pounds of coal to account for all of Bitcoin’s gigawatt usage.

Clearly, this was brought to Musk’s attention, which led to Tesla’s quick Bitcoin policy reversal.

Last month, the New York Times wrote,

“[Bitcoin] accounts for so litlte of the world’s total transactions, yet has the carbon footprint of entire countries.”

Could Tesla Accept Another Crypto Instead?

So, for now, Bitcoin is on the outs with Tesla. Musk did say that the company would be open to accepting another viable form of cryptocurrency as a payment method, assuming it would meet certain energy usage thresholds.

MyBookie has Etherum (+120) as the most likely crypto to partner with Tesla. After that, you have Dogecoin (+150), Ripple (+800), and Litecoin (+1000). Bitcoin also has +400 odds to eventually regain its status as a payment method.

Ethereum is the second-largest Crypto in the world behind Bitcoin. As of right now, one Ether comes out to about $2,900. Some believe its value will continue to rise, with the possibility that it jumps all the way up to $5,000 at some point in the near future.

The Current Value of Ethereum

Coin

Coin

While Bitcoin may have some energy-related issues to sort out, Ethereum seems to be ahead of the game in that regard. Ethereum will soon transition from mining to staking, which is expected to reduce Ethereum’s power consumption by over 99 percent!

Once that happens, Ethereum will be about 7,000 percent more energy-efficient than its primary rival. That will continue as long as Bitcoin and other forms of crypto continue to rely on mining. Ripple and Litecoin both still utilize mining, as well.

What About Dogecoin?

Once Tesla announced it was backing away from Bitcoin, many speculated about whether the company may actually start to accept Dogecoin instead.

Over the past few months, Musk has publicly embraced the meme-based crypto. Musk mentioned Dogecoin during his recent appearance as host of Saturday Night Live, and he even subsequently posted a Twitter poll asking whether Tesla should accept it as a form of payment:

As you can see, the results overwhelmingly favor Tesla actually accepting Dogecoin. Musk later tweeted that he was working with “Doge devs” to improve the efficiency of Dogecoin transactions, which caused Dogecoin’s price to jump by nearly 35 percent.

What’s the Best Bet?

While Bitcoin clearly has to figure out how to make its transactions more energy-efficient, Tesla is still wrapped up in BTC’s long-term success. Tesla still holds about 38,000 Bitcoin that was worth in excess of $1 billion as of late April.

In the end, it wouldn’t be a huge surprise if Tesla eventually went back to accepting Bitcoin. Dallas Mavericks owner Mark Cuban recently tweeted that his team will continue to accept Bitcoin, for example, because it is still a more energy-efficient alternative to gold.

At +400, Bitcoin is a perfectly viable option here. If you’re not sold on Bitcoin getting its act together in time, Ethereum at +120 looks like a viable option, too. Ethereum is taking active steps to reduce its carbon footprint, and its status as the second-most valuable crypto in the world can’t hurt its chances of getting onto Musk’s radar.

It’s hard to know what to make of Musk’s fascination with Dogecoin. It all feels like an elaborate prank, so I’ll pass on Doge at the +150 odds. Ethereum (+120) or Bitcoin (+400) are the ways to bet this.

What’s the Best Bet? –Ethereum (+120) or Bitcoin (+400)

Which Will Happen First, Cybertrucks or Tesla Accepting Crypto?

  • First Cybertruck Delivered (-120)
  • Tesla Accepts Another Cryptocurrency (-120)

This week, Ford is generating headlines for the highly-anticipated unveiling of its first all-electric F-150 pickup trucks. Of course, Musk and Tesla showed off their own version of the electric truck last year when Cybertruck was revealed to…mixed reviews.

In April, Musk said that he believes some of the first Cybertrucks will be delivered to customers by the end of this year, with mass production and distribution set to get underway at some point in 2022. You can actually preorder your own Cybertruck on Tesla’s website right now, if you’re into that sort of thing.

Unlike a normal pickup truck, the Cybertruck’s bed is called a “vault,” which really tells you all you need to know about how goofy this thing is. GM, Rivian, and other companies are expected to get into the electric truck game by the time Cybertrucks start to fill the streets.

Cryptocurrency is an incredibly volatile game, and Musk is a generally unpredictable guy. For all we know, he could tweet 30 minutes from now that Tesla is now fully on board with Ethereum, and that the company will accept all Ethereum payments beginning tomorrow.

The Cybertrucks seem to have a more predictable timeline, with late-2021 looking increasingly likely to be the target date for the first deliveries. As a result, I think the value here is to take the crypto wager at the -120 odds. We’ll see Tesla accept a new form of crypto before we see the first Cybertruck delivery.

Which Will Happen First? –First Cybertruck (-120)
Taylor Smith

Taylor Smith has been a staff writer with GamblingSites.org since early 2017. Taylor is primarily a sports writer, though he will occasionally dabble in other things like politics and entertainment betting. His primary specialties are writing about the NBA, Major League Baseball, NFL and domestic and international soccer. Fringe sports like golf and horse racing aren’t exactly his cup of tea, bu ...

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