The Multiple Effects of Musk’s Downfall: Bitcoin Loses Its Most Important Supporter

Bitcoin appears to have lost its most important backer.

In January the fish pool thanked Musk and wrote into the Bitcoin block, and in May CZ tweeted off. Musk’s future change in attitude towards Bitcoin is unlikely, and his complete unveiling of environmental issues will intensify Western society’s doubts about Bitcoin.
Bitcoin seems to have lost its most important supporter.

On May 13, Musk suspended Tesla’s support for Bitcoin payments because Bitcoin consumes too much fossil energy. Then citing Cambridge data, he called Bitcoin’s rapidly growing energy consumption insane. On May 16, Musk said in a tweet that “dogcoin is better than bitcoin” that he wanted to reduce the dogcoin fee by 100 times.

The Multiple Effects of Musk's Downfall: Bitcoin Loses Its Most Important Supporter

Musk’s original article translated again: “Tesla has stopped using Bitcoin to buy cars. We are very concerned about the rapid growth of fossil energy in bitcoin mining and trading, especially coal, which produces the worst emissions of any energy source. Cryptocurrency is a good note in many areas and we believe it has a bright future, but we can’t accept such a large drain on the environment. Tesla will not be selling any bitcoins in the future, and we will try to use it for transactions when it uses more green energy. We are currently looking for cryptocurrencies that use less than 1% of Bitcoin’s energy consumption. “

The significance of Musk’s “reversal” on Bitcoin should not be underestimated.

First, it is unlikely that Musk will change his attitude again, and he may no longer be a strong supporter of Bitcoin. Economically, Bitcoin uses more stable and better fossil energy. In the foreseeable future, Bitcoin mining cannot get rid of the stable fossil energy supply, even though the United States, China and other large countries are reducing fossil energy one after another, but Central Asia and the Middle East are unlikely to stop. Currently Tesla still holds more than 40,000 bitcoins. Musk says he won’t sell, but the company’s real money may not be Musk’s personal decision.

Secondly, although cryptocurrency people don’t want to admit it, the significance of Musk’s pull up to bitcoin as the world’s richest man + number one internet celebrity is there. on January 29th F2Pool even wrote the content of Musk’s tweets into bitcoin blocks in tribute to his contribution to the bitcoin community. This still seems ironic today. on May 14 Zhao Changpeng tweeted that he had unfollowed Musk.

Looking at the timeline: January 29th Musk changed his signature to Bitcoin ($33,000 in Bitcoin); February 8th Tesla announced it was putting up $1.5 billion to purchase Bitcoin ($42,500 in Bitcoin); March 24th Tesla announced it was supporting Bitcoin payments ($54,500 in Bitcoin); April 24th Tesla announced it was selling 10% of its Bitcoin ($51,100 in Bitcoin); May 13th On May 13 Musk attacked Bitcoin for consuming too much fossil energy and stopped Tesla from supporting Bitcoin payments (Bitcoin $50,000); On May 16 Bitcoin fell below a low of $47,000. Each of Musk’s major sub-movements very clearly stretched or lowered bitcoin by 5%-15%.

Third, Musk’s “unmasking” of Bitcoin’s environmental problems is more far-reaching. Never before in its history has Bitcoin received such strong support from such a heavyweight. It’s a shame that Musk’s four months of support disappeared so quickly. Environmental protection is a “politically correct” issue in Western societies almost as much as gender and race, and the environmental issues of Bitcoin have previously been buried in the ground without being voiced. Musk’s continued public opposition means that other elites will be less likely to support it.

One reason is that environmental concerns are starting to gain traction in Western societies as mining has shifted from China to the US since last year, with US bitcoin-listed companies buying up the vast majority of newly produced miners. At worst, the Bitcoin story is damaged, and it could even lead to a significant reduction in the willingness to buy by institutions, the source of Bitcoin’s current bull market push.

The very fact that this is a political issue suggests that rational discussion of Bitcoin’s energy consumption versus the banking system’s energy consumption and gold’s energy consumption makes little sense. All Musk has to do is post a picture of the data mess and the bitcoin story will be stamped as “environmentally unfriendly”. Every institution will have to weigh in on future purchases, and may even be protested by environmentalists.

Fourth, Musk remains an avid supporter of dogcoin. His latest statement is that he is helping to improve the dogcoin trading system, which could increase the speed and size of dogcoin blocks by 10 times and reduce the fees by 100 times. This comes after SpaceX said dogcoin was going to be the currency of the universe. Musk said he is looking for cryptocurrencies that consume less than 1% of the energy of Bitcoin. This means that MEME coins or even POS coins might get his backing. Maybe Musk’s interest in cryptocurrencies hasn’t changed. If Musk clearly supports Ether, then it may push Ether 2 .0 to accelerate and overtake Bitcoin in market cap as soon as possible.

The Multiple Effects of Musk's Downfall: Bitcoin Loses Its Most Important Supporter

Conclusion: Although the cryptocurrency community has changed from early praise to cursing Musk, and we can’t agree with Musk’s “crazy” operation, as netizens questioned, Tesla’s electricity is all clean energy, but his reversal does seem to be a bit of a hint of the current round of bull and bear conversion. In addition, environmental issues will bring a lot of variables to Bitcoin and the mining industry, which is also a new problem that will inevitably arise when Bitcoin enters the view of institutions and elites.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-multiple-effects-of-musks-downfall-bitcoin-loses-its-most-important-supporter/
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