Tesla’s billionaire chief executive Elon Musk suspended the use of Bitcoin as a mode of payment for the company’s electric vehicles because of "environmental concerns", triggering a slump in the world’s biggest cryptocurrency.
“Tesla has suspended vehicle purchase using Bitcoin. 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,” Mr Musk, who is also the co-founder of the company, said on Twitter.
“Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment,” he added.
Tesla had invested $1.5 billion in Bitcoin.
Bitcoin tanked as much as 17 per cent before regaining some ground. Prices for the digital asset were down more than 11 per cent to $50,050 at 4.38pm UAE time on Friday. Bitcoin soared 15 per cent in a single day in February when Tesla said it would accept it as a form of payment.
Tesla's decision in February was widely seen as an important validation of Bitcoin and sparked more interest in the crypto, which is mostly used as a speculative investment instrument rather than a mode of day-to-day payment.
Mr Musk’s decision to stop accepting Bitcoin drove other cryptos lower.
Ether, the second biggest cryptocurrency, dropped more than 8.4 per cent to $3,826.64 a coin at 9.30am UAE time. Dogecoin, which had reached a new level after the token was used to pay for Mr Musk-owned SpaceX's lunar satellite launch, plummeted 20 per cent after the announcement.
Stocks that were linked to digital currencies also dropped.
US-based Coinbase Global fell 4.8 per cent, while Microstrategy, which has invested billions of dollars of its assets into Bitcoin, plunged over 9 per cent.
Tesla, the world's biggest EV company, officially started accepting Bitcoin from its US customers on March 24. However, Mr Musk has faced criticism over the company's support for digital assets, even from Tesla's own investors who were concerned about the environment.
Electricity is a primary input of Bitcoin and other cryptocurrencies. The coins are mined by computers that process complex algorithms in halls that span the area of several football pitches.
Last month, researchers at Cambridge University estimated that the electricity consumption of the Bitcoin network is almost 120 Terrawatt-hours per year, more than the energy consumption of the UAE at 119.45 Terrawatt-hours, and on course to overtake Pakistan.
Mr Musk said he is open to other digital currencies that consume less energy than Bitcoin.
“Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use less than 1 per cent of Bitcoin’s energy/transaction,” he said on Twitter.
Mr Musk did not mention in his Twitter comments whether any vehicles have been actually sold through Bitcoin. Tesla did not immediately respond to The National's request for comment.
Meltem Demirors, chief strategy officer at digital asset manager CoinShares, said Tesla was unlikely to have sold many, if any, cars using Bitcoin and its change of course has created positive publicity for the company.
"Elon was getting a lot of questions and criticisms and this statement allows him to appease critics, while still keeping Bitcoin on his balance sheet," Mr Demirors told Reuters.
Last month, the California-based company delivered 184,800 cars in the first quarter of this year, beating analysts' estimates. Its net profit surged to $438 million, more than 27 times the $16m earned in the same period a year ago.
It was the seventh straight profitable quarter for the EV maker.
Global mainstream companies are increasingly accepting cryptocurrencies.
Goldman Sachs and Morgan Stanley plan to offer their clients access to crypto investments.
FinTech company PayPal is also offering its US customers an option to use digital currencies to pay for purchases at online merchants. It also created a dedicated business unit to focus solely on blockchain and crypto.
Global payments company Mastercard is reportedly planning to offer support for some cryptocurrencies on its network this year.
Meanwhile, the US-based food and beverage company Pepsi is also discussing options to buy Bitcoin.
Ride-hailing company Uber will accept Bitcoin and other cryptocurrencies as a form of payment if it benefits the business, it chief executive Dara Khosrowshahi said.
Last month, office-sharing start-up WeWork also said it is accepting select cryptocurrencies for payments.
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Navdeep Suri, India's Ambassador to the UAE
There has been a longstanding need from the Indian community to have a religious premises where they can practise their beliefs. Currently there is a very, very small temple in Bur Dubai and the community has outgrown this. So this will be a major temple and open to all denominations and a place should reflect India’s diversity.
It fits so well into the UAE’s own commitment to tolerance and pluralism and coming in the year of tolerance gives it that extra dimension.
What we will see on April 20 is the foundation ceremony and we expect a pretty broad cross section of the Indian community to be present, both from the UAE and abroad. The Hindu group that is building the temple will have their holiest leader attending – and we expect very senior representation from the leadership of the UAE.
When the designs were taken to the leadership, there were two clear options. There was a New Jersey model with a rectangular structure with the temple recessed inside so it was not too visible from the outside and another was the Neasden temple in London with the spires in its classical shape. And they said: look we said we wanted a temple so it should look like a temple. So this should be a classical style temple in all its glory.
It is beautifully located - 30 minutes outside of Abu Dhabi and barely 45 minutes to Dubai so it serves the needs of both communities.
This is going to be the big temple where I expect people to come from across the country at major festivals and occasions.
It is hugely important – it will take a couple of years to complete given the scale. It is going to be remarkable and will contribute something not just to the landscape in terms of visual architecture but also to the ethos. Here will be a real representation of UAE’s pluralism.
BUNDESLIGA FIXTURES
Saturday, May 16 (kick-offs UAE time)
Borussia Dortmund v Schalke (4.30pm)
RB Leipzig v Freiburg (4.30pm)
Hoffenheim v Hertha Berlin (4.30pm)
Fortuna Dusseldorf v Paderborn (4.30pm)
Augsburg v Wolfsburg (4.30pm)
Eintracht Frankfurt v Borussia Monchengladbach (7.30pm)
Sunday, May 17
Cologne v Mainz (4.30pm),
Union Berlin v Bayern Munich (7pm)
Monday, May 18
Werder Bremen v Bayer Leverkusen (9.30pm)
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Match info
Uefa Champions League Group H
Manchester United v Young Boys, Tuesday, midnight (UAE)
Oppenheimer
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Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
Scores in brief:
Day 1
New Zealand (1st innings) 153 all out (66.3 overs) - Williamson 63, Nicholls 28, Yasir 3-54, Haris 2-11, Abbas 2-13, Hasan 2-38
Pakistan (1st innings) 59-2 (23 overs)
Messi at the Copa America
2007 – lost 3-0 to Brazil in the final
2011 – lost to Uruguay on penalties in the quarter-finals
2015 – lost to Chile on penalties in the final
2016 – lost to Chile on penalties in the final
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
Water waste
In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.
Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.
A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.
The Emirates is the world’s third largest per capita water consumer after the US and Canada.
