Is Elon Musk Good For Bitcoin?
After the recent controversial tweets made by Elon Musk that caused the Bitcoin and Crypto market to crash. It makes me wonder if Elon Musk is good for Bitcoin. How can retail investors support someone who less than four months ago decided to shock the world and accept Bitcoin as payment for Tesla to then have a change of heart, and suspend the payment of Bitcoin due to the rapidly increasing use of fossil fuels?
Elon Musk is very insensitive to the collateral effects his words and influence have on cryptocurrency investors. When he makes statements like, ” We are concerned about the rapidly growing increasing use of fossil fuels for Bitcoin Mining and transactions especially coal, which has the worst emissions.” Of course, the Bitcoin Market is going to crash. My thoughts on this situation are Elon Musk must have been under a lot of shareholder pressure because Tesla’s mission statement is to “accelerate the world’s transition to sustainable energy.” This still shows the CEO is working towards what he preaches, but his delivery was terrible and, a lot of people stand to lose a lot of money due to his actions, but should we forgive Elon or move on?
To take a deeper dive into Elon’s reasoning for suspending Bitcoin payments due to sustainable energy. The annual global CO2 emissions equal about 37 billion tons of burned fossil fuel to Bitcoins’s 47 Million annually. Don’t you think there is a bigger bone to pick? Although Bitcoin miners have not fully transitioned into mining Bitcoin sustainably. Companies like Hut8 Mining have taken the first step towards green energy. Hut8 is located in Medicine Hat, Alberta, and if you don’t know, it is very windy and cold. Hut8 leverages Alberta’s climate for the use of wind turbines to mine Bitcoin sustainably. Anthony Pompliano went on CNBC after Elon made his statement and mentioned, “75% of all miners use a source of sustainable energy to mine Bitcoin.” However, this percentage is probably anecdotal. Now that using sustainable energy for Bitcoin mining is very valuable, miners will have to pivot quickly.
Some altcoins are here to stay. Dogecoin, which started as a complete joke, is now a household name among all altcoins and looks like it is here to stay. Elon Musk has a lot to do with the popularity of Dogecoin because he is consistently mentioning it in his tweets. Tweeting Dogecoin to the moon with its logo on the side of a rocket was hilarious initially, but now it’s getting old, and as a Bitcoin fan, I know it’s starting to make people angry. Bitcoin dominance is falling, and altcoins are pumping, which is normal and fine. But what most people don’t like is Elon Musk went as to say he and his team are working with Dogecoin developers as an alternative payment to Bitcoin for Tesla.
Elon’s Twitter Fingers
As much as it hurts me to say we can’t have a double standard to Elon’s Twitter fingers, it’s only fair. Elon became extremely popular within the crypto space when he put the Bitcoin Logo in his Twitter Bio. Next, he decided to announce Tesla has purchased Bitcoin for their balance sheet. Then, he erupted the Crypto Ecosystem when he announced Tesla will now be accepting payments of Bitcoin. At this point, everyone was thrilled, excited, and Elon Musk is known as a god. Now only a few months later, he announces Tesla will no longer be taking Bitcoin as payment at the moment, and for most investors, it feels like the world just took a complete turn for the worst. Everyone has to relax. It is not like he sold his Bitcoin position. That would have been a completely different situation. He is still Bitcoin’s biggest center of influence. We can’t hate him for the same reason we loved him.
The unfortunate part about Elons celebrity status every time he says anything bullish or bearish, the market has a significant adjustment. The purpose of decentralized finance is to reduce the risk of institutions manipulating the market. We can not allow Elons centre of influence to affect this market so dramatically. If this continues, what has changed. It is speculative, but this could have been a planned selloff for investors to make a quick buck. I give Elon Musk the benefit of the doubt that this wasn’t his motive, but you never know.
Elon Musk has been the most important centre of influence for Bitcoin, but his latest actions have made many people lose respect. He also needs to stop pumping Dogecoin because it honestly is a joke. His Twitter fingers are going to get him in trouble. Anything he says affects the markets. It may seem like a joke to him, but the reality is many people lost a lot of money when he announced that Tesla would be suspending Bitcoin transactions. Bitcoin has been around since 2009, and just recently, Elon got involved. Of course, having him be a major advocate for Bitcoin would be great, but with or without him, we will be fine.