Elon Musk and Tesla officially announced today, May 13th to cease Bitcoin as a source of payment for Tesla’s products. This announcement completely shattered the whole crypto industry, turning down the price of Bitcoin abundantly. Upon this announcement, Bitcoin suffered a huge drop of 15%, from $55,000 to $46,600. All this took place within a span of 3 hours. The whole entire market suffered a serious beardown. Not only Bitcoin, all other Altcoins and also those based on Bitcoin suffered the same fate today. The overall crypto market plummeted down drastically.
Elon and Tesla’s views
Elon Musk and Tesla together came up with this announcement today that set the whole crypto industry to chaos and including his twitter tweet too.
Elon’s reason for such a radical decision foresays immense amounts of electrical energy being spent on the mining of cryptocurrencies and Bitcoins. The mining of cryptocurrency involves extensive use of fossil fuels, which produce electricity. Such massive units of electricity are in need to run special computers which process various mathematical algorithms for crypto mining. He foresees that extensive mining of Bitcoins and other cryptocurrencies has increased the usage of fossil fuels. He further claims, Tesla is an environmentally friendly corporation that produces only electric cars, electric storages, solar equipment, etc. Being such a green revolutionized corporation, it will not accept any direct or indirect means of revenues that deplete fossil fuels.
The aftermath Market Scenario:
Once after the announcement, the complete crypto market turned into complete pandemonium, havoc, and chaos. A direct domino effect prevailed. Starting from the pull-down price of Bitcoin from $55,000 to $46,600, witnessing a fall of 15% in just 3 hours of the announcement. Furthermore, all the altcoins based on Bitcoin and other cryptocurrencies faced the same bear dropdown. The whole market flunked out. Bitcoin’s ‘Greed & Fear’ indeed value antagonistically differed from a Greed of 68% yesterday to a Fear of 31% today.
Critics were on the rise ever since the SNL announcement took place. After the announcement of the SNL , witnessed nothing but just a complete surge of Dogecoin shooting up to its highest of $0.737. His tweet just hours before the SNL slumped Dogecoin to $0.619. This raised speculations on a pessimistic view on Dogecoin among the crypto geeks all over. And as per the predictions after the SNL, prices raced downwards from the high point of $0.75 to $0.35 in monotonous manner every day till today.
This was the same for Bitcoin too. Bitcoin’s price trumped up to ever high of $65,00 during mid-April ever since Tesla announced that it would accept payments in Bitcoins. And what happened today with Tesla ceasing Bitcoin as a payment method resulted in the exact opposite, dumping and crashing the whole crypto market.
Critics and traders are furiated with such radical acts of Elon. Barstool Sports founder, Dave Portnoy, clashed out Musk is like the Wizard of Oz in the crypto world. Once he pulls a lever, he shoots up the price of Dogecoin up and that of Bitcoin down. He further instigated Elon should have a responsibility while uttering something. This is because when he says to buy something and the next second says not to, it’s simply like playing with people’s hopes and riches. Many traders sued Elon Musk and now demand the US Securities and Exchange Commission- SEC to look into this issue. Skeptics proclaim all this is a game of scam played by Elon Musk.
Adrian Przelozny, CEO of Independent Reserve also commented Elon’s acts to be “disappointing”.
A Trader’s Perspective
On the contrary many crypto analysts are now commenting on this opportunity to buy cryptocurrency at its dip. Traders are all set and are now buying cryptos and Bitcoins at their dips.
William Clemente III, the Bitcoin Magazine contributor tweeted this is the best opportunity for one to buy Bitcoin in its whole history so far.
Adam Back, the British cryptographer, cypherpunk, and CEO of Blockstream along with Anthony Pomplino, CEO of Morgan Creek Digital, both thanked Elon for bringing the price of Bitcoin down. They also depicted, whatever they all along with Elon too didn’t sell their Bitcoin reserve.
All this speculates a strategical scam move by Elon Musk, or was it all just a spontaneous act.Only profound investigations could solve this mystery.
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