During yesterday’s Bitcoin discussion between Elon Musk, Jack Dorsey and Cathie Wood, the Tesla CEO dropped several bombshells.
After Tuesday’s plunge and Wednesday’s bounce, Bitcoin is holding steady at the $32,000 mark today. As a result, the digital store of value is up around 4.3 percent on the day. At press time, BTC is trading at US$32,016.
The basis for the cryptocurrency’s upswing is believed by many to be the results that came to light yesterday during “The B Word” panel. In a video conference, self-proclaimed “Dogefather” Elon Musk, Twitter founder Jack Dorsey and Ark Invest CEO Cathie Wood discussed Bitcoin’s potential and risks. In the process, Musk in particular dropped several bombshells that had an impact on the prices of various cryptocurrencies, at least in the short term. Thus, the Tesla CEO surprised right at the beginning with the statement that not only the e-car manufacturer owned Bitcoin, but also SpaceX. Since the space company is private, this information had not been known before. It also remains unclear how high SpaceX’s crypto holdings actually are.
In the interview, Musk also revealed his private crypto investments. Thus, leaving Tesla shares aside, his choice of assets is limited to Bitcoin, Ether and Dogecoin. With the multientrepreneur’s PR push for Memecoin in recent months, some within the crypto space suspected that Musk himself might be among those 20 wallet owners who hold over 50 percent of all DOGE. However, the Tesla CEO denied that. “I own significantly more Bitcoin than Dogecoin or Ether,” the 50-year-old let slip.
“Tesla will likely accept Bitcoin again”.
In mid-May, Tesla sent shockwaves through the crypto space when the e-car maker announced it was suspending Bitcoin as a form of payment due to its “climate-damaging effects.” A debate ensued over the consensus proof-of-work mechanism, mining, and Musk was accused of double standards. Now, however, the about-face. In conversation, the world’s third richest person revealed that the vehicle manufacturer would “probably” accept bitcoin again. With China currently rigorously closing mining farms, especially those that rely on coal-fired power, the cryptocurrency is moving in a more energy-efficient direction.
I believe that renewable energy will indeed be the cheapest form of energy in the long run, but it won’t happen overnight. But as long as there’s a long-term trend towards the use of renewable energy by the community, Tesla can support that.
Elon Musk on “The B Word”
The trend toward more climate-friendly bitcoin mining existed before, however, as evidenced by the Cambridge Bitcoin Electricity Consumption Index. Nevertheless, Musk did not miss the opportunity to pat himself on the back for his efforts.n. He believes that Tesla, because of its connections in the renewable energy sector, could play a major role in the energy transformation of mining. He also spoke in favour of the use of nuclear power. This is safe and climate-friendly. The Tesla CEO does not seem to have given any thought to the problem of final storage.
Crypto market proves more resilient to Musk’s statements
Elon Musk’s statements caused market reactions in the crypto space more often than not in the past. However, the multi-billionaire’s influence seems to be steadily waning. That’s because ever since the statements regarding bitcoin mining and the flash crash in mid-May, some within the crypto community have held a grudge against the Tesla CEO. And so, while the market also reacted positively to the multi-entrepreneur’s comments this time around, it was nowhere near as strongly as it had in previous days.
Thus, the rally in Bitcoin began yesterday in the run-up to the online panel. By the afternoon, the cryptocurrency was already trading at $32,000. Ethereum and Dogecoin were also able to regain old positions before the talk had started. After Musk then made his statements, the prices of the three assets briefly swung north, but quickly flattened out again and have been trending sideways ever since. The fact that even Musk’s favorite playground, Dogecoin, barely reacted to his statements shows that even the Memecoin community may have had enough of his antics. In general, the crypto space seems more mature in this regard. Whether this sobriety can be maintained in the next bull run remains to be seen.