Bitcoin flourishes and dwindles with just a few words, emoji, or smiley on Elon Musk’s Twitter handle. Elon Musk’s tweets have been a significant influencer on bitcoin and other cryptocurrencies. While some of his tweets positively affect bitcoin, others do impact crypto’s portfolio negatively. His tweets shook the whole community of investors and affect the price of bitcoin and dogecoin.
Back in May the bitcoin industry lost almost $1 trillion. The most widely used cryptocurrency, Bitcoin, has dropped to $30,066 from its usual April peak. Ethereum, too, was battered by the cyclone, falling 57% to $1,850 just because of Elon Musk’s statement,
“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. Cryptocurrency is a good idea… but this cannot come at great cost to the environment.”
He also claimed that the electric carmaker would not sell any Bitcoin and plans to use it for transactions after mining moves to more environmentally friendly energy sources.
According to market observers, Tesla’s move is an attempt to appease investors who are concerned about climate change and conservation.
Musk’s statement had a tremendous impact on the cryptocurrency market that there were records of loss as bitcoin’s price fell by 10% immediately after the tweet. Many controversies arose at this point when Musk expressed Tesla’s withdrawal from accepting bitcoin for payment. Now that bitcoin’s price has dropped, furious and unhappy investors are accusing Musk of betrayal in the discussion boards.
Contrary to his earlier statement at the beginning of 2021, he discussed investing more in bitcoin. However, his other tweet in May was contradicting and misleading, but it could affect the price of bitcoin as a whole.
Also, because one bitcoin transaction, according to Digiconist, consumes the same quantity of electricity as an ordinary American household does in a month and emits about a million times more carbon than a simple Card transaction.
Elon Musk was also criticized earlier this year for using his influence to encourage bitcoin, with some believing that environmentally beneficial electric vehicles were being purchased with energy-intensive crypto.
During the crypto chaos caused by Musk’s tweet, he was able to cite the reason behind the new action and Tesla’s status with bitcoin at the moment of his tweet that he will not sell the company’s bitcoin, and it’s likely that some kind of cryptocurrency will be accepted to purchase a Tesla again in the future.
He also tweeted that Tesla would probably resume receiving payments in bitcoin once it undertakes thorough research on the utilization of renewable energy used in bitcoin mining.
He further explained that “Tesla’s goal is to hasten the arrival of renewable energy and that the firm can’t achieve that while also failing to focus particularly on bitcoin’s energy usage.”
Elon Musk’s Cryptocurrency Status and Tesla’s
On June 13, Elon Musk tweeted that Tesla will begin permitting Bitcoin transactions after reasonable 50 percent renewable energy utilization by miners is confirmed by a brighter economic future trend.
In response to Chinese mining crackdowns, a large portion of bitcoin mining was done in China, where cheap coal and hydropower made it slightly more cost-effective. However, Musk noted that some of these coal plants had been shut down, and a substantial chunk of miners in China had begun to relocate elsewhere.
However confusing they were, Musk’s statements demonstrate that he still maintains enormous influence over cryptocurrency prices. As a result, many investors have changed their minds and decided to buy bitcoin. Despite the sharp decline in the price of bitcoin and other cryptocurrencies, Bitcoin, Ethereum, and others rose when the billionaire founder revealed more details about his and his companies’ stakes at the virtual panel.
His aerospace business SpaceX also owns bitcoin, in addition to his bitcoin holdings and Tesla’s bitcoin holdings. Elon Musk also mentioned that he owns ether and dogecoin. Following his words, the value of all three cryptocurrencies increased.
The billionaire also stated that he is inherently strong on Bitcoin and an enthusiastic fan of cryptocurrencies. With this comment, it is clear that he is not abandoning cryptocurrency altogether. Still, due to the big issue of bitcoin mining, which is posing environmental and economic concerns, Tesla had to take a step back.
“If Bitcoin price falls, I lose money. I may pump, but I never dump.” Musk stated his opinion. “I don’t believe in creating a high price and then selling it. I want Bitcoin to succeed.”
Elon Musk did not reveal the exact size of his investment or SpaceX’s stake in the cryptocurrency portfolio. However, he implies that his rocket technology firm would delve into Bitcoin just as he claimed earlier this year that Tesla had put $1.5 billion in Bitcoin to its balance sheet.
From past and recent experience of Elon’s tweets on bitcoin, the cryptocurrency market should be ready for more moves of bitcoin impacted by the crypto influencer.