Elon Musk Changed his Mind about Bitcoin - What Happened?
According to CNBS news update of 14th of May:
«Bitcoin surged 12.79% to $39,533.81 as of 1:52 a.m. ET Monday, according to data from Coindesk»
«Bitcoin’s price surged Sunday evening stateside after Tesla CEO Elon Musk said the electric vehicle maker could accept bitcoin transactions again in future.
As of 1:52 a.m. ET Monday, Bitcoin surged 12.79% to $39,533.81, according to data from Coindesk. Since the start of the year, bitcoin has surged more than 30%, though its current price is way off the all-time high of $64,829.14 hit in April.
Those gains came after Musk said Sunday that Tesla will resume allowing bitcoin transactions “when there’s confirmation of reasonable (~50%) clean energy usage by miners with a positive future trend.»
Elon Musk has recently tweeted that «Tesla has suspended vehicle purchases using Bitcoin.» Even though Tesla company has recently invested in Bitcoin $1,5 billion which raised the value of the cryptocurrency. So only two months ago customers could use Bitcoin as a payment method.
Right after the Musk announcement Bitcoin's exchange value has dropped by 15%, from $54 623 to $47 720. Then as a result there was a reduction of other cryptocurrencies also: Ethereum by 14.3%, Uniswap by 9.3%, Polkadot by 4.7%, and Dogecoin by 18.8%. The total cryptocurrency market capitalization fell from $ 2.38 trillion to $ 2.13 trillion.
Elon Musk announced that the Tesla company will not be using Bitcoin as a payment method until the mining transitions to more ecological methods and more sustainable energy.
Elon Musk tweeted: «Energy usage trend over past few months is insane»
«Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at a great cost to the environment.» - said Musk in his announcement.
But also the company is considering using other cryptocurrencies that use <1% of Bitcoin’s transaction.
The total cryptocurrency market capitalization fell from $ 2.38 trillion to $ 2.13 trillion.
Right after the Musk announcement Bitcoin's exchange value has dropped by 15%, from $54 623 to $47 720.
Then as a result there was a reduction of other cryptocurrencies also: Ethereum by 14.3%, Uniswap by 9.3%, Polkadot by 4.7%, and Dogecoin by 18.8%.
Does Elon Musk care about the environment, or is use it to become richer?
According to the report of 2020 Tesla invested in Bitcoin $1,5 billion even though it was still using a lot of energy for mining and transactions.
Due to the New York Times report, Musk claimed that the Tesla company would not use Bitcoin as a payment method until the mining transitions to more ecological methods and more sustainable energy. But it doesn’t mean that the company and Musk himself have sold cryptocurrency savings before the total cryptocurrency market capitalization dropped down. Eventually, Musk himself is a businessman, not an eco-activist.
Elon Musk changed his mind about Bitcoin trading.
According to the report of 2020 Tesla invested in Bitcoin $1,5 billion even though it was still using a lot of energy for mining and transactions.
Due to the New York Times report, Musk claimed that the Tesla company would not use Bitcoin as a payment method until the mining transitions to more ecological methods and more sustainable energy.
«A number of Musk’s recent tweets have also sparked in the crypto community a mix of ebullience, confusion, apprehension and, at times, dread.»
According to Independent News:
«Elon Musk, the CEO of Tesla, has tweeted that the car company will not be selling any of its cryptocurrency, despite the market currently crashing
The CEO tweeted that Tesla has “diamond hands”, using emoji to signify the slang term for crypto-holders that resolutely refuse to sell their holdings in spite of an uncertain market.»
Tesla's report for the second quarter of 2021 will reveal the info that has just been told about above.
From our expert side, C3PA claims that due to Musk’s speculative twits, the price of Bitcoin in the third quarter would be higher than ever - $100 000 dollars in the third quarter.
Experts on Bloomberg news submitted:
«This quarter is shaping up to be a tricky one for the bottom line. Despite record deliveries, the first quarter’s net income relied heavily on sales of regulatory credits and even Bitcoin. That was partly due to a sharp drop in production of higher-margin Models S and X vehicles.
Tesla Inc. may have sold some Bitcoin already this quarter. I know Elon Musk tweeted something indicating otherwise, but that isn’t always a rock-solid reference. Plus, Tesla’s May sales figures for China just came in.
Including May’s recovery, sales are still running slightly behind where they were in the first two months of the prior quarter. The third month of each quarter is typically Tesla’s strongest in China. Still, in order just to match the first quarter’s sales there, Tesla would need to deliver almost 36,000 vehicles in June, slightly higher than even the spike in March.”