Reports: What is the relationship of Elon Musk to the decline in Bitcoin?
Elon Musk's tweets cause Bitcoin's value to drop sharply
It seems that the cryptocurrency Bitcoin is not living its best days, and this comes a few weeks after it reached its highest levels since its launch more than 11 years ago, and just as the recent rise of Bitcoin is due to Elon Musk’s tweets, its sudden and sharp decline is due to the same reason.
And the past few weeks have known the arrival of Bitcoin to nearly 64,000 US dollars, which is an unprecedented number in the history of this cryptocurrency, but the value of this currency is currently in the range of 44,000 dollars, and it may be likely for a new decline, and Elon Musk was announced in Last February, that his electric car company, Tesla, had invested a huge amount in Bitcoin, amounting to 1.5 billion US dollars, and with this huge investment, Elon Musk says that future buyers will be able to rely on this currency in order to buy new cars from Tesla.
Which was confirmed weeks later when he announced that the purchase of Tesla smart electric cars has become available for buyers on its website via the digital currency Bitcoin, as the option to buy via Bitcoin has been added, and it is the option that was only available for those wishing to buy in the United States. But everything turned around days later when Elon Musk announced, through a new tweet on his Twitter account, that the company would stop accepting Bitcoin as a means of payment for the purchase of its smart cars, and this decision comes on the sidelines of scientific reports talking about the serious environmental damage to the Bitcoin mining process.
We are concerned about the increasing reliance on carbon-rich fuels for Bitcoin mining and its transactions, especially coal with the worst emissions (greenhouse gases) of all fuels. Cryptocurrencies are a good idea,” Musk said in his tweet. In many ways we believe they have a bright future, but that cannot be at the expense of the environment. Tesla will not sell bitcoin and we intend to use it in transactions once mining turns to more sustainable energy. We are also looking at other cryptocurrencies that use less than 1%. Of the energy bitcoin uses. ”
Musk added in another tweet, “To be clear, I strongly believe in cryptocurrencies, but this cannot lead to a massive increase in the use of fossil fuels, especially coal.”