Bitcoin: I don’t have a “dad” like Musk

Isn’t Musk the guy who invented Bitcoin?

Bitcoin: I don't have a "dad" like Musk

“Isn’t Musk the guy who invented Bitcoin?”

Don’t think this is a joke, recently, according to a new survey by an Australian website Finder, 56% of Australians don’t know that the creator of Bitcoin is Satoshi Nakamoto and they believe Musk is the founder of the world’s largest cryptocurrency. The root of this perception, I’m afraid, lies in the inextricable association of the name Musk with Bitcoin or cryptocurrency for a long time recently.

And recently, especially on the night of May 19, a night of shock, mainstream cryptocurrencies plunged into the red. According to Bitstamp data, Bitcoin fell below $31,000, down 30% in 24 hours, a new low since the end of January this year; Ether fell below the $2,000 mark, down more than 40%; Dogcoin lost $0.3 per coin, down more than 40% during the day. As of 11 p.m. on May 19, the 24-hour blowout reached $6.4 billion (about RMB 411). With the collective plunge, many people pointed the finger at Musk, claiming to “short Tesla”, and he was named “Master of the year leek cutter”. Someone even created a token called “FUCK ELON MUSK”, which has gone up wildly.

So what is Musk’s love/hate story with cryptocurrencies?

Cryptocurrency’s wild spokesperson

Musk’s “bandwagon” for cryptocurrencies seems to have started frequently this year, and Twitter is his tool. In January, he sent out a tweet with one word: “DOGE.” thus kicking off the dog coin endorsement.

In a series of operations since then, Musk has easily pushed this joke meme coin to the clouds, appreciating more than 500% in January. This also triggered the attention of the SEC, saying that he intended to manipulate the market. The company’s main goal is to make sure that the company’s products and services are available to the public.

Later this month, on May 8, Musk hosted the popular NBC late-night show Saturday Night Live (SNL), where he referred to himself as “The Dogefather” in a tweet announcing the news. The move sent dogcoin soaring in the short term, soaring 21% during the day, with the price once surging to 34 cents. Musk, of course, will not be satisfied with this, because the day of the show is on Mother’s Day, he is on the hole, said to send his mother dog coin as a Mother’s Day gift, “love mom to send her dog coin oh.” This operation, in the past 24 hours of the show, dogcoin soared nearly 50%, once stood at $0.6 per piece, a new record high.

In the week after that day, the dogcoin rose nearly 100%. If you count from the beginning of the year, the price of dogcoin has risen over 11,000% as of that day. This slightly playful digital currency has been speculated by him into outer space before he can carry it to Mars.

In addition to dogcoin, which is his “real son,” bitcoin is considered Musk’s “godson. In January of this year, Musk quietly changed his Twitter profile to Bitcoin, and with this change alone, Bitcoin rose 20% that day.

But the reason Bitcoin has really caught fire recently is because of the push from industrial capital such as grayscale and microstrategy. Since the end of 2020, they have been adding fuel to the bitcoin fire with real money. microstrategy in particular started investing in bitcoin by issuing a large number of securities at the end of last year, and by February of this year they were holding over 90,000 of them. With this industrial capital taking the lead, within six months, companies and institutions of all stripes began buying bitcoin in droves, vowing – “there should be more bitcoin on the corporate balance sheet”.

Of course, Musk is not far behind. On February 8, Tesla officially issued a document stating that it had purchased $1.5 billion worth of bitcoin, and bitcoin rose 18.8% that day. But that’s not all. By the end of March, Musk tweeted that he could now use bitcoin to buy Tesla cars, which naturally ushered in a spike.

And so, with real money and Musk’s celebrity, you can hear the words “Bitcoin is soaring to new highs, and the cryptocurrency market cap is at a new high” for the past six months. Musk has succeeded in putting his “godson” on the map again.

Crypto “Advocate” Turns “Betrayer”

As early as when the dogcoin was soaring, some economists said that Musk’s “bandwagon” was the main reason for this wave of dogcoin’s fire, and that if Musk stopped this behavior one day, or if there was no obvious support behavior, the dogcoin would be beaten back or even collapse.

As the saying goes, “Success is Musk, failure is Musk”, and this saying has really come true recently.

After 3 months of touting Bitcoin on a daily basis, Musk suddenly tweeted on May 13 that Tesla was suspending Bitcoin as a payment method because Bitcoin mining consumes too much energy and was considering using a less energy intensive cryptocurrency. People are confused, this is not a sudden change of environmentalist, right?

In fact, his intention is to pull his “godson” off the pedestal and help his “son” to the top. In this regard, he also directly launched a poll on Twitter asking his fans whether Tesla should accept dog coins as a payment method. More than half of the people chose to agree.

However, this time, Musk’s pulling and stepping behavior directly flipped the car. A few days ago, dogcoin along with other animal cottage coins such as Shiba Inu coin partied for a day, soaring 10 times before finally being beaten back hand in hand on the 19th, with dogcoin falling by over 56%.

And some time ago Musk was suspected to be hinting that he had dumped Bitcoin, which was again in a bloodbath. It fell from about $59,000 on May 10 of this year to a low of $30,681 on Thursday local time.

The entire cryptocurrency chart is in the red, and it’s like investors’ hearts are dripping with blood. Musk has suddenly become a “traitor” in the eyes of the cryptocurrency community.

The value of Tesla’s bitcoin holdings fell to $1.26 billion, close to what it cost the company to buy ($1.5 billion), but nearly half of what it was worth as of March 31 of this year ($2.48 billion).

After the May 19 crash, just as the entire virtual currency market was in a state of panic, Musk came back to clarify that Tesla was not selling any bitcoin and tweeted the “diamond hand” symbol again. The “diamond hand” is a symbol often used on Reddit to indicate that the company will continue to firmly hold stock or other assets, implying that the company will still not sell bitcoin. And that’s not all. In the evening of the 20th, he sent out another tweet with a picture of a dog bill…

But the good news is that after a few hours of fishy weather, all cryptocurrencies are now starting to rally in the evening of May 20, and bitcoin is back to a steady, green and reassuring level above $40,000.

This series of blatant manipulations by Musk has really caused a lot of discontent, and even Dogcoin founder Palmer has accused Musk of being a gambling con man, and he’s going to stay that way.

Bitcoin Beginnings

After seeing Musk’s manipulation of the cryptocurrency world, I believe many people will realize that cryptocurrency investment is a big gamble in itself. It is essentially a P2P form of virtual cryptocurrency that does not rely on a specific monetary institution to issue, and is a highly free financial market. But on another level, Bitcoin uses a distributed database to confirm and record all transactions, and a cryptographic design to ensure security in all aspects of the currency’s circulation. In short, it was originally designed for the tamper-evident, or secure, nature of transactions.

Over time, however, it has moved further and further away from that purpose. People increasingly see Bitcoin as a speculative product that can make people rich overnight, it has faced countless accusations and praise, and it is increasingly being forgotten what Bitcoin was originally intended to be.

Bitcoin was created in the context of the ’08 financial crisis and has its roots in solving the currency problem; it was once touted as digital gold that would curb the devaluation of fiat currencies and resemble a safe-haven asset like gold. Ironically, though, bitcoin is now a risky asset, following the same trend as US stocks.

To put it bluntly, it is Satoshi Nakamoto’s dissatisfaction with the existing financial system, and Satoshi Nakamoto has said, “The fundamental problem with traditional money stems from exactly what is needed to keep it running – trust – people have to trust that the central bank will not intentionally inferiorize the currency. But the history of fiat money is full of betrayals of that trust. We trusted the banks, and the banks held and electronically transferred our money. Yet banks have thrown money out through wave after wave of credit bubbles under a partial margin system.”

In short, Bitcoin’s biggest role is to solve the problem of inflation in centralized currencies. And to some extent, it does bring benefits to humanity. For example, in some economically backward regions such as Africa, limited by the inflation of fiat currency, more and more people are accepting the use of bitcoin as a payment job to protect their property.

Perhaps this is just a nice vision of an ideal world. But it’s ultimately just a tool, and how it’s used is still up to people’s whim. Ironically, the decentralized nature of the algorithm itself could have prevented people from artificially manipulating the value of the currency by creating large amounts of bitcoin, but it couldn’t prevent people like Musk from using it to maliciously manipulate the market by using their own market influence, and it’s really the people who are messing with the market order that deserve the most vitriol, not the cryptocurrency itself.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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