Several Bitcoin investors have turned on Elon Musk and said they would cancel their Tesla Cybertruck orders after the billionaire said the company would no longer accept the cryptocurrency.
The Tesla CEO announced on Wednesday the company would suspend the use of bitcoins for vehicle purchases over climate change concerns.
In a statement posted on Twitter with the caption "Tesla and Bitcoin," the billionaire explained why his company would suspend purchases in bitcoins.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
He added: "We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.
"Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transactions to more sustainable energy. We are also looking at other cryptocurrencies that use <1 percent of Bitcoin's energy/ transaction."
According to a Nature Communications study published earlier this year, the annual energy consumption of the Bitcoin blockchain in China "is expected to peak in 2024" and "generate 130.50 million metric tons [nearly 144 million U.S. tons] of carbon emission correspondingly."
The study, titled "Policy assessments for the carbon emission flows and sustainability of Bitcoin blockchain operation in China," added the output would exceed the annual greenhouse gas emission of the Czech Republic and Qatar.
According to Coindesk, the price of Bitcoin tumbled from $54,602 down to $52,466 in the minutes that followed Musk's announcement. It added that the 24-hour change in the value of Bitcoin represented an 11.10 percent drop.
Tesla's stock value was also hit by the announcement, down 4.42 percent in the last 24 hours.
Tesla bought $1.5 billion of bitcoin earlier this year, later selling 10 percent of its holding.
Musk added on Wednesday that Tesla would not be selling any more bitcoin as the company intends to use it for transactions when mining becomes more sustainable.
Several Bitcoin investors, furious with Musk's announcement, announced on social media that they would cancel their Cybertruck orders.
Investor and Skill Incubator founder Chris Dunn took to Twitter to lash out at Musk and was critical about the reasons the billionaire gave for the bitcoin payment suspension on Tesla.
When explaining why he was canceling his order, Dunn said: "Elon said Tesla will no longer accept bitcoin as payment because it 'comes at great cost to the environment.'
"This is incorrect and disingenuous. I cannot support someone who pumps altcoins to uninformed people on TV, then claims bitcoin is the problem.
"I hope Elon and Tesla rethink their stance on bitcoin. Until then, please cancel my cybertruck order."
Dear @elonmusk ... pic.twitter.com/oUxYfLh9Id
— Chris Dunn (@ChrisDunnTV) May 13, 2021
Dozens of investors also took to social media to say that they would cancel their orders in response to Musk's announcement.
One commenter replied to Musk's tweet and said: "Lost all my respect for you. Didn't think you would bend the knee after all your talk. Tesla order cancelled."
Another added: "I cancelled my Tri Motor order tonight and I got in early too. Until Elon walks back those words, Tesla is dead to me."
A third said: "Cancelled my cybertruck order. Bitcoin doesn't need Tesla."
Tesla has described the all-electric, battery-powered Cybertruck as being "designed to have the utility of a truck with sports car performance" and is being developed to provide a sustainable alternative to fossil fuel-powered vehicles.
Production for the first set of models is expected to begin in late 2021.
Musk had earlier appeared supportive of cryptocurrencies and said last week he would use Dogecoin, a meme-inspired cryptocurrency, to fund a satellite to the Moon.
Newsweek has contacted Tesla for comment.
