The crypto community probably won’t forget how Tesla’s actions abruptly stopped the use of Bitcoin (BTC) as a payment medium after the announcement in March.
The drastic decision has led to the collapse of the crypto market for weeks and is even more impactful as BTC is embroiled in its mining issues affecting the environment.
A big question arises - did the world -famous Elon Musk and Tesla actually fail to do research on Bitcoin (BTC) because it is quite impossible if ‘yes’. Again Tesla has made investments totaling $ 1.5 billion and Musk himself frequently uploads Bitcoin-related tweets.
Leading investor and also Shark Tank reality tv host, Kevin O’Leary believes the decision was taken due to pressure received from among Tesla shareholders.
He explained in an interview: “Tesla shareholders are from a community that cares about environmental sustainability and they do not like the idea of using Bitcoin as a medium to buy cars. That's why they urged Musk to make the statement. "
No wonder why Musk urges those involved with BTC mining to resolve environmental, social and governance issues (ESG).
In fact, the ESG criteria is emphasized in conventional finance because it is a concern in assessing the impact of practices and implementations on the financial and operational performance of a company. In fact, ESG can be said to be one of the factors to attract potential investors.
However for the crypto sector, this is something new.
Reports have also revealed that Tesla has received warnings from its investors, APG Asset Management and American Century Investment to forget about Bitcoin and return to focus on the firm’s key objectives.
Apparently Musk is stuck between his passion in crypto and Tesla investors who prefer ESG criteria.
