Home Crypto News Bitcoin Is Back! Can Elon Musk Drive BTC to $50Ok?

Bitcoin Is Back! Can Elon Musk Drive BTC to $50Ok?

16 min read

The value of Bitcoin has climbed again above $40Ok for the primary time in roughly three weeks.

The passage over $40Ok could not have been precisely sudden. However, after questions arose about whether or not or not the value of BTC would want to fall beneath $30Ok earlier than a significant restoration was attainable, the rise above $40Ok is actually an indication that issues are trying up. Some analysts are even eyeing $50Ok.

What’s occurring?

Elon Musk Says That Tesla Will Accept BTC Payments “When There’s Confirmation of Reasonable (~50%) Clean Energy Usage”

One of probably the most important items of reports was, but once more, led to by Elon Musk. Last month, Musk’s announcement that Tesla would not be accepting Bitcoin funds despatched shockwaves by the market. Some analysts imagine that the announcement contributed to market actions that triggered greater than $12 billion in liquidations of leveraged positions.

However, on Sunday, Elon took a step again towards Bitcoin.

True to fashion, the announcement got here in a tweet: “When there’s confirmation of reasonable (~50%) clean energy usage by miners with a positive future trend, Tesla will resume allowing Bitcoin transactions,” Musk wrote.

Musk was responding to a CoinTelegraph tweet linking to an article by which Magda Wierzycka, the Chief Executive of Sygnia, accused Musk of Bitcoin market manipulation. “What we have seen with Bitcoin is price manipulation by one very powerful and influential individual,” Wierzycka stated in an interview with Bruce Whitfield on the Money Show this week, per CoinTelegraph’s report.

Musk responded by saying that: “this is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market,” after which occurring to say that Tesla will start accepting funds when the Bitcoin mining trade is confirmed at 50% clear vitality.

“Elon Musk’s Irresponsible Tweets Have Caused More People to Get Liquidated than Any Other Crypto Event in History.”

The markets actually appear to have responded to Musk’s announcement that Tesla has a theoretical path towards accepting Bitcoin funds sooner or later. On Sunday, earlier than the tweet went out, the value of Bitcoin was hovering beneath $35Ok. After the tweet was posted, Bitcoin’s value shot to practically $37Ok and has continued constructing momentum ever since.

However, not each member of the cryptocurrency group appears to be thrilled that Elon Musk is again. After asserting that Tesla would give up accepting Bitcoin final month, Musk drew ire from throughout the crypto trade.

For instance, on June fifth, Ran Neuner, the creator and host of CNBC’s crypto dealer, tweeted that: “Elon Musk’s irresponsible tweets have caused more people to get liquidated than any other Crypto event in history. Over 1 MILLION people have been liquidated, some losing their entire savings. These are the stats.”

Even hacking group, Anonymous took goal at Elon, accusing him of ‘playing dumb’ with regards to Bitcoin’s carbon footprint. Why? So that Tesla might proceed incomes vitality subsidy funds from the US authorities.

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“The energy use argument about proof-of-work mining is a very nuanced conversation that requires a fairly complex understanding of how power grids work and how excess energy is wasted by power companies and sought out by crypto miners,” an nameless consultant stated in a video that was posted final week.

“This is a conversation that you have been having for over a year and were intimately aware of,” the rep stated, occurring to suggest that Musk’s ‘divorce’ from crypto could have had hidden motives: finally, to “…centralize the industry and take it under your control.”

Hidden Motivations?

Now that Musk and Tesla seem to be taking a step again towards crypto, some crypto market individuals seem to be skeptical.

For instance, Blockstream CTO and Pixelmatic CEO, Samson Mow wrote in reply to Musk’s tweet about returning to BTC funds that: “So if we setup mining farms close to all Tesla Supercharging stations, we should be fine right? (sic)”

In different phrases, there may be some perception that Musk could possibly be attempting to place Tesla’s clear vitality manufacturing as a attainable supply of vitality wanted for Bitcoin mining. However, there doesn’t seem to be any onerous proof that that is the case.

“Bitcoin Is Resurgent Today as Markets React Positively to the Words of a Celebrity Seeking to Associate Himself with the Space.”

Ultimately, some analysts imagine that Musk’s newest crypto-related feedback are nothing greater than an attention-grab.

In a press release shared with Finance Magnates, Bitfinex CTO, Paolo Ardoino stated that: “Bitcoin is resurgent today as markets react positively to the words of a celebrity seeking to associate himself with the space,” Ardoino wrote. “The king of crypto is carrying cryptocurrency markets higher amid hopes that bitcoin miners will move towards a higher usage of renewables as their primary energy source.”

However, Ardoino, and plenty of others, finally imagine that Musk’s antics are a distraction from extra significant development occurring within the Bitcoin and cryptocurrency sphere at giant. “Meanwhile, bitcoin’s utility and use cases such as the Lightning Network continue to strengthen and grow,” Ardoino wrote. “While it is important to always take a long-term view with this incredible technology, we’re seeing a quiet optimism return to the market.”

Still, it’s simple that Musk’s involvement in crypto will proceed to have some impact on the crypto area for the foreseeable future.

Paolo Ardoino of Bitfinex
Bitfinex CTO Paolo Ardoino

Paul Haber, the CEO of Graph Blockchain Inc., stated in a press release shared with Finance Magnates that: “The environmental implications of Tesla’s reacceptance of Bitcoin will most likely be insignificant because they aren’t likely to perform many transactions.”

However, Haber believes that Musk’s best affect on Bitcoin has to do with the narrative: “By far the biggest impact it will have is Elon educating the new users they introduce to the network about Bitcoin’s electricity use and his push for sustainability in the Bitcoin network.”

Paul Haber, the CEO of Graph Blockchain Inc.

Bitcoin’s Environmental Reckoning Continues

And, no matter whether or not Tesla gives the vitality or not, Bitcoin is going through a severe reckoning about its carbon footprint. The New York Times is amongst a myriad of reports sources which have revealed numerous articles highlighting Bitcoin’s environmental influence, notably as its value rose all through the course of 2021.

While Bitcoin advocates argue, as Anonymous did, that the dialog about precisely how a lot vitality Bitcoin makes use of is ‘nuanced’, the very fact stays that, at greatest, there may be fairly a little bit of ambiguity surrounding the quantity of carbon that Bitcoin releases into the ambiance.

Industry leaders have taken up the difficulty with the creation of the Bitcoin Mining Council, which Musk is definitively not part of. According to Business Insider, the present individuals embody enterprise intelligence supplier, MicroStrategy, funding administration agency, Galaxy Digital, blockchain mining firm, Argo, expertise agency, Hive and mining firm, Riot.

El Salvador, Taproot May Also Be Boosting the Price of BTC

Beyond Elon Musk and renewable vitality, Bitcoin’s value may be having fun with a lift from a number of different items of optimistic information which have hit the airwaves this week.

Earlier this month, the Central American nation of El Salvador turned the primary nation ever to settle for bitcoin as authorized tender. According to The Guardian, the choice got here “as part of its technology-loving president’s proposals to use the cryptocurrency to promote ‘financial inclusion’, investment and economic development.”

Additionally, the Australian Financial Review reported as we speak that Bitcoin’s value could possibly be driving excessive off of the Taproot improve, “which was approved by the majority of bitcoin developers at the weekend.” Taproot was designed to enhance privateness, effectivity and “most importantly, unlock the ability for smart contracts to take place on the bitcoin blockchain.” The improve is ready to be accomplished by November.

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