BitCoin and Elon Musk: A fallen Love Story
Elon Musk or demigod as some people on the internet consider him has taken a sharp U turn on his stance on Bitcoin after realising after almost 4 months, that Bitcoin mining is harmful for environment and since he has largely been responsible for the movement in the crypto prices, the bitcoin plummeted more than 15% post his declaration on the same. Surprisingly, it took almost 4 months for the second richest person on earth to manifest this . Well, this can sound fishy and anomaly to a logical mind, but we are talking about crypto guys, whose largest buyers have been millennials and GenZ.
Tomorrow if something comes up, which makes sense to a very few and has a technological blend to it, soon we might see the asset prices flare up “TO THE MOON” of that as well.
All this started in February 2021, when this demigod (read EVIL) announced on a platform where everyone has opinion (read Twitter) that his company has purchased 1.6 BILLION dollars of Bitcoin and planned to accept cryptocurrency as a medium of exchange and payments.
Fast Forward a few weeks later in April , news came that Tesla has sold 10% of its holding to reflect the liquidity of the currency and now after few more weeks, Musk announces that he is “CONCERNED” by the excess use of fossils in the mining of BITCOIN. This put the Crypto market on a frenzy, since there DEMIGOD has bespoken and we noticed a high level of sell offs in the market of this Crypto-Currency world Demigod (Bitcoin) now called “EVIL” by another EVIL (read musk) for being environmentally unfriendly. If we are discussing the environment, perhaps we should do something about the banking ecosystem and gold mining as well, whose energy consumption and environmental impact are far greater and grosser compared to BitCoin. A study indicated that 73% of the energy consumed by bitcoin mining is carbon neutral. Thanks to its significant dependence on hydro power in key mining hubs including Southwest China and Scandinavia. Another report from the CCAF hints that 39% of energy consumption in mining was carbon neutral.
In all this “crypto madness without method”, what has been confusing to me in the MUSK declaration has been the intend to keep Bitcoin on their balance sheet and look for other currencies that use less than 1% of the emission.
Either way, it is difficult to believe that Musk didn’t know about the environment impact of all this before. The strategy that he is using now is often called position booking in broking terms. This also seems like a very conscious effort to make Dogecoin (for whom Elong Musk calls himself to be DOGEFATHER), next bitcoin and actually take its prices to the moon. Going by the surge in prices of Dogecoin since that tweet, it seems he is using his position of power to play this situation while camouflaging his nefarious designs under the righteousness of Environment protection.
