Business
Tesla Suspends Bitcoin Purchases Over Environmental Impact, Causing Coin’s Value To Crash 20%
Published
2 years agoon
By
Cory Ray
- Tesla CEO Elon Musk said Wednesday that his electric vehicle company would be ceasing all Bitcoin sales effective immediately, even though it just started using the cryptocurrency in March.
- The announcement prompted a massive sell-off of Bitcoin, which plunged almost 20% on Wednesday.
- In his statement, Musk said, “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.”
- Many have since accused Musk of manipulating the crypto market since Bitcoin’s environmental impact has long been one of its most controversial facets.
Tesla Suspends Bitcoin Purchases
Volatility is essentially a prerequisite for Bitcoin, but Wednesday proved to be an especially bad day for the cryptocurrency after Tesla CEO Elon Musk announced that the electric vehicle company would no longer be accepting the coin as a form of payment.
At the beginning of the day, Bitcoin was trading for around $57,000. Following Musk’s announcement, it had fallen to a 24-hour low of just over $46,000 — amounting to a nearly 20% drop in value.
“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,” Musk said via 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.”
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
This policy update comes after only months after Tesla disclosed in February that it had bought $1.5 billion in Bitcoin. It also comes after the company began accepting Bitcoin as payment for vehicles in March.
Still, with this sudden about-face, Musk said, “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 <1% of Bitcoin’s energy/transaction.”
Bitcoin’s Environmental Impact
Musk tweeted a graph Thursday morning from Cambridge’s Centre for Alternative Finance that shows Bitcoin’s increasing energy use since 2016.
Energy usage trend over past few months is insane https://t.co/E6o9s87trw pic.twitter.com/bmv9wotwKe
— Elon Musk (@elonmusk) May 13, 2021
In March, researchers with the Centre reported that Bitcoin’s energy consumption has jumped 80% since the beginning of 2020.
Bitcoin’s impact on the environment has long been a subject of debate since mining it takes excessive amounts of electrical energy, but that problem has only gotten worse with the coin’s continued growth.
On Monday, Ars Technica reported that a defunct coal power plant in upstate New York has been restarted to mine Bitcoin. In January, Iranian officials partly blamed Bitcoin for mass blackouts in the country. Researchers have even found that Bitcoin mining uses more energy than places like Argentina, a country with 45 million people.
Is Musk Manipulating the Market?
The overall reaction to Musk’s announcement was less than favorable, with many accusing the billionaire of manipulating the crypto market.
“[This is] the same guy who’s been pulling the levers on crypto and has everyone following his every move,” Dave Portnoy, the controversial owner of Barstool Sports, said. “He’s sending Dogecoin up. He’s sending Bitcoin down. This is bullshit.
“Elon, you have responsibility when one second you say to buy something and the next second you don’t,” Portnoy added. “That’s playing with people’s futures, their fortunes.”
Emergency Press Conference – Elon is Trying To Tank #Bitcoin pic.twitter.com/3Tl8LgB3mD
— Dave Portnoy (@stoolpresidente) May 12, 2021
Others made similar statements accusing Musk of essentially controlling Bitcoin prices, with MMA fighter Keith Berry saying, “Elon is a smart cookie, do you really think he didn’t know about energy usages on #Bitcoin after he bought 1.5B in BTC in December 2020”
Elon is a smart cookie, do you really think he didn’t know about energy usages on #Bitcoin after he bought 1.5B in BTC in December 2020🤔 . #Doge4Tesla #CryptoNews #cryptotwitter #Crypto
— Keith “KO kid” Berry (@kokid951) May 13, 2021
"the good thing about #bitcoin and other crypto currencies is the fact that no one has control over the market"
— Bvg Shôw (@gombizzle) May 13, 2021
Elon musk: pic.twitter.com/DGj0juLPwZ
Everyone should cancel their Tesla orders because of the #Bitcoin manipulation going on from Elon…
— The Moon 🌙 (@TheMoonCarl) May 13, 2021
Still, some argued that recent disappointment in Musk is good for Bitcoin in the long term.
“This is great for #Bitcoin,” one person tweeted. “It should never depend on the thoughts and opinions of a single entity. The Elon Musk effect is being priced out and that’s positive for the cryptocurrency industry in the long run.”
This is great for #Bitcoin. It should never depend on the thoughts and opinions of a single entity.
— Seco (@CryptoSeco) May 13, 2021
The Elon Musk effect is being priced out and that’s positive for the cryptocurrency industry in the long run.
See what others are saying: (Reuters) (CNBC) (The New York Times)
Business
TikTok to Require Labels on Manipulated Media, Ban Deepfakes of Children
Published
12 hours agoon
March 22, 2023
The social media platform says it wants to embrace the creativity AI can offer while being cautious of the “societal and individual risks” that come with it.
TikTok is rolling out a slew of limitations regarding synthetic deepfake videos, including a ban on deepfake content of children.
In an update on Tuesday, the social media platform said it wants welcome “the creativity that new artificial intelligence and other digital technologies may unlock” while also being careful of the “societal and individual risks” that come with it. To mitigate those risks, TikTok will require users to label manipulated media depicting “realistic scenes.” Users can do so in stickers, captions, or other means that make it clear the video is “synthetic,” “fake,” “not real,” or “altered.”
On top of that, there are new restrictions about who can be the subject of these manipulated videos. TikTok will not allow deepfake media that shows the likeness of a “young person” or any private person, including adults. It is also barring deepfakes that depict adult public figures giving political or commercial endorsements, as well as deepfakes that violate one of the platform’s other rules.
“While we provide more latitude for public figures, we do not want them to be the subject of abuse, or for people to be misled about political or financial issues,” the company’s updated guidelines say.
As TikTok’s policies previously stated, synthetic media that has been edited to mislead audiences about real-world events is also not allowed on the platform.
As far as what kind of deepfake media is allowed on TikTok, the company said videos showing adult public figures in “certain contexts, including artistic and educational content,” get the green light. This can include a video of a celebrity doing a TikTok dance, or a historical figure being depicted in a history lesson.
The rules will be enforced starting April 21. Between now and then, TikTok says it will be training its moderators to better implement the guidelines.
See what others are saying: (The Verge) (The Associated Press) (TechCrunch)
Business
Adidas Financial Woes Continue, Company on Track for First Annual Loss in Decades
Published
2 weeks agoon
March 8, 2023By
Star Pralle
Adidas has labeled 2023 a “transition year” for the company.
Yeezy Surplus
Adidas’ split with musician Kanye West has left the company with financial problems due to surplus Yeezy products, putting the sportswear giant in the position to potentially suffer its first annual loss in over 30 years.
Adidas dropped West last year after he made a series of antisemitic remarks on social media and other broadcasts. His Yeezy line was a staple for Adidas, and the surplus product is due, in part, to the brand’s own decision to continue production during the split.
According to CEO Bjorn Gulden, Adidas continued production of only the items already in the pipeline to prevent thousands of people from losing their jobs. However, that has led to the unfortunate overabundance of Yeezy sneakers and clothes.
On Wednesday, Gulden said that selling the shoes and donating the proceeds makes more sense than giving them away due to the Yeezy resale market — which has reportedly shot up 30% since October.
“If we sell it, I promise that the people who have been hurt by this will also get something good out of this,” Gulden said in a statement to the press.
However, Gulden also said that West is entitled to a portion of the proceeds of the sale of Yeezys per his royalty agreement.
The Numbers
Adidas announced in February that, following its divergence from West, it is facing potential sales losses totaling around $1.2 billion and profit losses of around $500 million.
If it decides to not sell any more Yeezy products, Adidas is facing a projected annual loss of over $700 million.
Outside of West, Adidas has taken several heavy profit blows recently. Its operating profit reportedly fell by 66% last year, a total of more than $700 million. It also pulled out of Russia after the country’s invasion of Ukraine last year, which cost Adidas nearly $60 million dollars. Additionally, China’s “Zero Covid” lockdowns last year caused in part a 36% drop in revenue for Adidas compared to years prior.
As a step towards a solution, Gulden announced that the company is slashing its dividends from 3.30 euros to 0.70 euro cents per share pending shareholder approval.
Adidas has labeled 2023 a “transition year” for the company.
“Adidas has all the ingredients to be successful. But we need to put our focus back on our core: product, consumers, retail partners, and athletes,” Gulden said. “I am convinced that over time we will make Adidas shine again. But we need some time.”
See what others are saying: (The Washington Post) (The New York Times) (CNN)
Business
Elon Musk Bashes Disabled Ex-Twitter Employee, Gets Blowback
Published
2 weeks agoon
March 7, 2023By
Chris Tolve
After Musk claimed the former employee “did no actual work,” the staffer calmly directed passive-aggressive insults right back at the billionaire.
Excuse Me, Do I Still Work Here?
Elon Musk brawled online with a former Twitter employee who didn’t know whether he was fired Tuesday, accusing the staffer of exploiting his disability.
Haraldur “Halli” Thorleifsson, who has muscular dystrophy, joined Twitter in 2021 after it acquired the creative agency he founded: Ueno.
He said on Twitter that he was unable to confirm whether he was still a Twitter employee nine days after being locked out of his work computer, despite reaching out to the head of HR and Musk himself through email.
Dear @elonmusk 👋
— Halli (@iamharaldur) March 6, 2023
9 days ago the access to my work computer was cut, along with about 200 other Twitter employees.
However your head of HR is not able to confirm if I am an employee or not. You've not answered my emails.
Maybe if enough people retweet you'll answer me here?
At the time, Twitter had laid off at least 200 workers, or some 10% of its remaining workforce.
In search of an answer, Thorleifsson tweeted at Musk, who responded with the question: “What work have you been doing?”
After being given permission by Musk to break confidentiality, Thorleifsson listed several of his accomplishments, including leading “design crits to help level up design across the company.”
Among others:
— Halli (@iamharaldur) March 7, 2023
– led the effort to save about $500k on one SaaS contract. Supported closing down many others
– led prioritization of design projects across the company to make sure we were able to deliver with a small team
– led design crits to help level up design across the company
— Halli (@iamharaldur) March 7, 2023
– was hiring manager for all design roles
– worked on efforts to steer the company away from focusing on power users and on to younger users (because our user base is aging)
“Level up from what design to what? Pics or it didn’t happen,” Musk replied.
“We haven’t hired design roles in 4 months. What changes did you make to help with the youths?”
You locked my computer. I don't have access to any pics or docs. If you want to have it opened I can get you things.
— Halli (@iamharaldur) March 7, 2023
Thorleifsson reminded Musk that he couldn’t access any pictures because he was locked out of his work computer.
– Level up from what design to what? Pics or it didn’t happen.
— Elon Musk (@elonmusk) March 7, 2023
– We haven’t hired design roles in 4 months
– What changes did you make to help with the youths?
Musk stopped replying to the tweets, but hours later he returned to the platform to lob invective at his former employee.
Musk Vs. Halli
“The reality is that this guy (who is independently wealthy) did no actual work, claimed as his excuse that he had a disability that prevented him from typing, yet was simultaneously tweeting up a storm,” Musk tweeted, apparently referring to Thorleifsson. “Can’t say I have a lot of respect for that.”
The reality is that this guy (who is independently wealthy) did no actual work, claimed as his excuse that he had a disability that prevented him from typing, yet was simultaneously tweeting up a storm.
— Elon Musk (@elonmusk) March 7, 2023
Can’t say I have a lot of respect for that.
“But was he fired? No, you can’t be fired if you weren’t working in the first place,” he added.
But was he fired? No, you can’t be fired if you weren’t working in the first place!
— Elon Musk (@elonmusk) March 7, 2023
In a later Twitter thread, Thorleifsson said he could type for one or two hours at a time before his hands cramped, but that in pre-Musk Twitter, that wasn’t a problem because he was a senior director.
I can however write for an hour or two at a time.
— Halli (@iamharaldur) March 7, 2023
This wasn't a problem in Twitter 1.0 since I was a senior director and my job was mostly to help teams move forward, give them strategic and tactical guidance.
He added that despite his crippling disability, he worked hard for years to build Ueno.
“We grew fast and made money,” he said. “I think that’s what you are referring to when you say independently wealthy? That I independently made my money, as opposed to say, inherited an emerald mine.”
We worked for more or less every big tech company.
— Halli (@iamharaldur) March 7, 2023
We grew fast and made money. I think that's what you are referring to when you say independently wealthy?
That I independently made my money, as opposed to say, inherited an emerald mine.
Thorleifsson made several more passive-aggressive jabs at Musk.
“I joined at a time when the company was growing fast,” he wrote. “You kind of did the opposite. The company had a fair amount of issues, but then again, most bigger companies do. Or even small companies, like Twitter today.”
I joined at a time when the company was growing fast. You kind of did the opposite.
— Halli (@iamharaldur) March 7, 2023
There was a lot going on. The company had a fair amount of issues, but then again, most bigger companies do.
Or even small companies, like Twitter today.
Thorleifsson said that immediately following his back-and-forth with Musk, Twitter’s head of HR confirmed that he had indeed been fired from the company.
See what others are saying: (Business Insider) (CNN) (Yahoo)

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