Tesla calls off bitcoin payments, is Musk ‘tired of the old’ or ‘wanting to get away with it’?

Is Tesla’s decision to stop Bitcoin payments “a sign of dislike for the old” or “a sign of dislike for the new”, and has the “big-eyed” Musk “betrayed the revolution”?

Tesla CEO Elon Musk, who has been touted as a flag bearer for bitcoin and cryptocurrencies, tweeted that Tesla has called off using bitcoin payments due to concerns about the skyrocketing consumption of fossil fuels such as coal triggered by bitcoin mining and trading.

Tesla calls off bitcoin payments, is Musk 'tired of the old' or 'wanting to get away with it'?

This triggered a strong reaction from the crypto market. At one point, the price of Bitcoin sank from near $55,000 to $48,000, according to Bitpush terminal data, and Bitcoin’s collapse triggered panic throughout the crypto market.

Tesla calls off bitcoin payments, is Musk 'tired of the old' or 'wanting to get away with it'?

Crypto insiders have also spoken out against Musk’s statement and Tesla’s decision, with Morgan Creek founder Anthony Pompliano tweeting sarcastically, “Expect Tesla to stop accepting USD payments because USD also has a negative impact on the environment.”

Chia founder Bram Cohen, on the other hand, commented on Twitter, “If you’re worried about the environmental impact, you should sell all your bitcoins, which will increase supply and thus lower prices, lower mining revenue and energy consumption.”

However, not everyone is critical of Musk, and Galaxy Digital CEO Mike Novogratz tweeted, “I take him at his word. He cares about the environment and he is using his influence to push bitcoin mining towards a greener future. Many companies in this space are already working on this.”

For his part, Gemini co-founder Cameron Winklevoss said, “Musk will rethink this when he realizes that bitcoin mining is actually driving the renewable energy industry forward, at which point the price of bitcoin will soar.”

For his part, Michael Sonnenshein, CEO of Grayscale, believes that renewable energy has the potential to play an important role in cryptocurrency and mining.

Tesla calls off bitcoin payments, is Musk 'tired of the old' or 'wanting to get away with it'?

According to media reports last month, leading investment bank Goldman Sachs said in a research report that Bitcoin’s energy problems undermine its idea of digital gold. It mentioned that it was “premature” for bitcoin to compete with gold as a safe asset, as its mining requires extremely high energy consumption.

Previously, the University of Cambridge estimated that the Bitcoin network consumes about 130 terawatt hours (TWh) of electricity per year, and if Bitcoin were compared to a country, its energy consumption would be enough to rank in the top 30 in the world. passenger car traveling 138 billion miles.

Goldman Sachs believes that these broad environmental and energy consumption issues are causing potential investors to avoid bitcoin.

Since Bitcoin’s energy consumption problem is not a new one, why is Musk choosing to abandon Bitcoin, which he has been supporting, at this time?

Makoto Sakuma, deputy principal researcher at the Nissen Institute for Fundamental Research, says that the high energy consumption of bitcoin miners has long been known, so it’s nothing new. But combined with some of Musk’s recent comments about dogcoins, his latest rhetoric seems to indicate that his enthusiasm for the cryptocurrency may be waning.

This speculation is not unlikely, as the problem of using clean energy is not insurmountable for Bitcoin, with renewable energy sources playing an increasingly important role and resources such as oilfield waste gas that once had to be wasted now finding the most appropriate ways to be used.

Tesla calls off bitcoin payments, is Musk 'tired of the old' or 'wanting to get away with it'?

But “new is better than old” might explain Musk’s choice. He said Tesla will not sell off its current cryptocurrency holdings and is considering using less energy-intensive cryptocurrencies.

In fact, more cryptocurrencies are using low-energy consensus solutions such as proof of stake. The second largest blockchain, Ether, is also transitioning to a proof-of-stake mechanism.

Justin d’Anethan, sales manager at Diginex, a Hong Kong-based digital asset company, said, “Musk’s rationale for suspending Bitcoin payments was due to the consumption of fossil fuels by Bitcoin mining, but most cryptocurrencies have found more efficient ways to address the problem.”

John Deaton, an attorney representing Ripple, the company behind XRP, said that regardless of what Musk thinks, he has brought the best advertising campaign to XRP. Ripple CEO Brad Garlinghouse previously said that XRP is 10,000 times more energy efficient than bitcoin. Another Ripple co-founder, Chris Larsen, also suggested that Bitcoin should ditch the proof-of-work consensus mechanism.

Of course there is never a shortage of conspiracy theorists in the market, especially when every tweet from Musk can send the price of Bitcoin or other cryptocurrencies soaring and plummeting.

Over the past six months, Musk has been able to pull the price of bitcoin up whether he changes his avatar, modifies his Twitter profile, or posts bitcoin pictures and comments, and likewise, he is perfectly capable of using his influence to profit while pulling the price of bitcoin down, whether by shorting it outright or buying it when it plummets, which could bring him more profit than selling cars.

In addition, there is also speculation from Weibo users that the previous high-profile “shorting of dogcoin” by digital asset management company Graydoo, and this action by Musk, is a counter-attack against each other.

Tesla calls off bitcoin payments, is Musk 'tired of the old' or 'wanting to get away with it'?

According to industry terminal data, after a deep drop on Thursday morning, the price of bitcoin has rebounded slightly and has now risen to $51,000 above. Musk’s tweet, whether it’s a “new and bored” or a “catch and release”, and whether the “big-eyed” Musk has “betrayed the revolution” or not, we need to see further. Revolution”, we still need to further observe.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/tesla-calls-off-bitcoin-payments-is-musk-tired-of-the-old-or-wanting-to-get-away-with-it/
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