Too arrogant! Musk’s rant: force virtual currency to replace legal tender

On May 23, Tesla CEO Musk tweeted again yesterday, “The real battle is between fiat currency and cryptocurrency. On balance, I support the latter.” In fact, this is not the first time Musk has been so strongly in favor of virtual currencies, as he has stated several times before that dog coins are the currency that ordinary people should use.

Too arrogant! Musk's rant: force virtual currency to replace legal tender

In recent times, Musk repeatedly jumped sideways, one moment in favor of virtual currency, and then against it. In February this year, Musk announced to allow virtual currency to buy Tesla electric cars, and a few days ago closed the purchase channel. Influenced by Musk, the value of virtual currencies has also been fluctuating high and low, and in recent days it has reached an all-time low since March.

Compared to legal tender, the biggest problem with virtual currencies is that they are not backed by a credit system and are generally used for illicit transactions on the black market and dark web, where they can evade market regulation. These problems mean that its value is not guaranteed and could collapse at any time. From a historical macro perspective, it is only a matter of time before virtual currencies collapse, but as long as they don’t collapse in their own hands, they don’t count as a collapse. This is the reason why so many people are still involved in speculating and mining virtual currencies even though they know the drawbacks of them.

Too arrogant! Musk's rant: force virtual currency to replace legal tender

What’s more, the Centre for Alternative Finance at the University of Cambridge calculates that as of May 17, 2021, the annual electricity consumption of global bitcoin “mining” will be about 134.89 TWh, surpassing even that of Sweden, which is ranked 27th in terms of national electricity consumption. The most popular virtual currency, Ether.

When discussing virtual currencies with netizens in major forums, Xiao Lei found many Musk’s “believers”. They said that the biggest significance of virtual currencies is decentralization, not to be manipulated by any institution. However, one word from Musk can cause the entire virtual currency market to skyrocket or plummet, the so-called “decentralization” is simply self-deception.

Too arrogant! Musk's rant: force virtual currency to replace legal tender

There are also Musk “believers” who compare virtual currencies to stocks, but the two are completely different, as stocks are based on companies with real value. These companies need to raise money before they can go public and issue shares. And listing is not a casual thing, for example, A shares must be certified by the relevant authorities, the total share capital of the company is not less than 50 million yuan, and also three consecutive years of profit, which is the guarantee given by the relevant authorities to the shareholders.

Virtual currencies with no real value are on the rise, and the market value has doubled continuously this year, entirely as a result of speculation. Now bitcoin, ethereum and other virtual currency plunge, there are many people up the idea of bottoming out. The actual fact is that the actual people who are in the marketplace are not only the ones who are in the marketplace, but also the ones who are in the marketplace.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/too-arrogant-musks-rant-force-virtual-currency-to-replace-legal-tender/
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.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-05-23 23:37
Next 2021-05-23 23:44

Related articles