PoS coins gain ground after Tesla stops accepting Bitcoin

Proof-of-Stake (PoS) coins have outperformed the market overall. The move may have been sparked by Tesla’s decision to halt sales of electric vehicles paid for in Bitcoin, amid concerns about the currency’s environmental footprint.

On May 13, the electric-car maker expressed concern about the rising share of fossil fuels, chiefly coal, in Bitcoin mining and transactions.

In Elon Musk’s view, the use of cryptocurrencies should not lead to increased use of non-renewable energy sources.

To be clear, I strongly believe in crypto, but it can’t drive a massive increase in fossil fuel use, especially coal

— Elon Musk (@elonmusk) May 13, 2021

The founder of Tesla also said that it is high time to introduce a carbon tax.

It is high time there was a carbon tax!

— Elon Musk (@elonmusk) May 13, 2021

Unlike proof-of-work, in Proof-of-Stake, earnings for stakers depend on the number of coins involved in staking. This does not require significant energy expenditure and does not affect the environment.

Bitcoin had fallen about 6.6% from its levels after Musk’s tweets.

Among PoS-based cryptocurrencies by market cap, the period showed relatively better performance. The price of Cardano rose by 11.1%, Stellar by 1%. The quotes for Klaytn and EOS fell by 0.6% and 5.4%.

The leader in this category was the Hedera Hashgraph coin. It rose 24.3%.

On May 14, Elon Musk announced collaboration with the Dogecoin team regarding “improving the efficiency of system transactions.” Against this backdrop, DOGE returned to the top-5 by market cap.

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