Elon Musk suggests that Tesla will sell bitcoin and price plummets | Finance & Finance

Elon Musk, the CEO of Tesla and SpaceX, continues to hurt the price of bitcoin (BTC). The cryptocurrency has reached its lowest value since February after the tycoon suggested, last Sunday (16), that his electric car company may sell its reserves of the asset. The news generated panic in the market, causing the digital currency to fall by more than 15%.

Elon Musk criticizes bitcoin and indicates that Tesla can sell its reserves (Image: Steve Jurvetson / Flickr)

On Sunday morning, bitcoin was traded for $ 49,670. This Monday (17), the cryptocurrency plummeted to the minimum value of US $ 42,102, according to the index CoinDesk.

A Twitter user who suggested that Tesla will sell its bitcoin reserves, which would negatively affect the market. “Certainly,” replied Musk to the tweet, implying that he agreed with the statement. That was enough for investors to panic. In January, the electric car company became one of the cryptocurrency’s biggest buyers by acquiring $ 1.5 billion in BTC. If that amount were sold, the price of the digital currency would be severely affected.

Elon Musk goes from ally to enemy of bitcoin

The mere possibility of Tesla disposing of its billion dollar investment in bitcoin has made cryptocurrency sales intensify, causing the lightning devaluation seen on Sunday. In addition, Musk has changed its stance on the asset it once supported so much, affecting the confidence of institutional investors in the digital currency.

Last week, Musk announced that Tesla will no longer accept payments and, bitcoin for its electric cars. “We are concerned about the rapid growth in the use of fossil fuels for mining and digital currency transactions, especially coal, which has the worst emission levels of any fuel,” justified Musk.

Now, the billionaire has even argued with other Twitter users about the digital currency, refuting the decentralized nature of cryptocurrency. “Bitcoin is actually highly centralized, with the vast majority of its units controlled by a handful of large mining companies,” said Musk in a tweet. “A single coal mine in Xinjiang flooded, almost killing miners, and the hash rate dropped 35%. Does it sound ‘decentralized’ to you? ”.

After so much speculation about what Tesla did with its cryptocurrencies (and what it can do in the future), Musk clarified in another publication that his electric car company “did not sell any bitcoin”. However, he has not commented on what he plans to do with the reserves of more than $ 1 billion in BTC.

Dogecoin is a possible substitute for bitcoin

While Musk ceases to support bitcoin, dogecoin (DOGE) is increasingly emerging as a serious digital asset alternative. It was a time when the billionaire played about the cryptocurrency based on a Shiba Inu dog meme, today his statements indicate that the digital currency is seen by him as an investment opportunity.

After negative talks about bitcoin this past Sunday, many Twitter users criticized the billionaire. Without patience, he immediately replied: “Hateful threads like this make me want to bet everything on DOGE”.

Last week, he created a poll on Twitter asking more than 54 million followers if they would like SpaceX to accept payments in dogecoin, indicating that this could happen.

Previously, Musk announced to the whole world that SpaceX will literally take DOGE to the Moon in 2022. The space company agreed to carry out a fully paid meme-based cryptocurrency mission, taking a satellite called DOGE-1 into space next year. .

With information: The Economic Times

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