, 2 years ago

Bitcoin under pressure: What to make of Elon Musks drama?

Bitcoin has seen better days. Elon Musk caused a huge drama over the last couple of days and many analysts believe that his remarks about Bitcoin had a negative impact on the price of BTC and the rest of the market. Is Bitcoin a threat to the environment and is Dogecoin the solution to all of Bitcoins problems?

Musk criticized Bitcoin

According to Musk Bitcoin mining needs to much power and the energy consumption is a unnecessary burden to the environment. Many Bitcoiners pointed out that this is a very narrow view of the actual situation of the mining industry, which is in fact very big in China. But the power that is bought by miners is also green. Namely because there is seasonal availability of hydropower.

But Musk didn’t really care and while it seemed that he was also joking about Bitcoin the community got hostile. Bitcoiners cancelled their order with Tesla and argued with Musk via Twitter using the comment section.

According to Musk, Tesla will refrain to accept BTC as long as there is no green alternative to the energy that is used by the mining industry.

Dogecoin is different

But things get even better, because Musk will keep supporting Dogecoin. And while it is not clear if he is just trolling, the market reacted heavily on his statements via Twitter. Tesla has announced not to sell the companies BTC holdings, but that isn’t really a promise.

With the Techno king flip-flopping all over social media nobody really knows what comes next. Perhaps even Musk himself has no idea where he is going to take the debate that he started. But what is more important is his role regarding the price development. Musk singlehandedly crashed the entire crypto market. Only a few exceptions could resist the strong downtrend among them Solana.

This has brought up another debate. Should Elon Musk even comment on these topics? Freedom of speech is important, but it seems that the richest man in the world is not choosing his words with caution. A whole market crashed on his remarks about Bitcoin. Also, part of the market took off up to a ridiculous level when Dogecoin reached 64 Cent per Doge.

Perhaps we don’t have to ask Musk to be more careful, but have to take a look at ourselves. Do we really need his advice to make our own decisions?

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Jan 26, 2023

When Elon Musk announced in early 2021 that Tesla would become a Bitcoin company, investing in Bitcoin and accepting BTC for payments, the market went crazy. Alas, Elon turned down the Bitcoin community later when Tesla renounced its plans to accept BTC. The story took another unfortunate turn last year after Tesla sold a sizeable portion of Bitcoin.

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