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Elon Musk Drops 1.5 Billion on Bitcoin, But What Does That Mean?

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Elon Musk is a South African-born American entrepreneur who co-founded PayPal (an electronic payment firm) and formed a company called SpaceX that makes launch vehicles and spacecraft. Musk was also a significant investor in the electronic car manufacturer Tesla.

Recently Elon Musk decided to invest $1.5 billion in the cryptocurrency Bitcoin. Since this investment, the price of Bitcoin has jumped to a record high. But what is Bitcoin and why did Elon Musk choose to invest so much money in this digital currency? Keep reading below to find out more:

What is Bitcoin?

Bitcoin, often labeled as a digital currency, a cryptocurrency, or a virtual currency is a type of currency that is completely virtual. It is basically an online version of cash. Like cash, Bitcoin can be used to buy products and services, though very few shops currently accept this type of currency.

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However, some companies are beginning to change their payment options. For example, in October last year, PayPal announced that it would allow its customers to use Bitcoin to buy and sell products.

Why Did Elon Musk Invest in Bitcoin?

When the richest businessman in the world gives his support to a virtual currency, you know it is big business. Elon Musk believes that the virtual currency Bitcoin is a “good thing”. Thanks to this, the value of Bitcoin has risen significantly. So much so that a single Bitcoin went from $3600 in March last year to more than $27,000 now.

If you are interested in trading digital currencies like Elon Musk, then there are some crucial things you should think about before buying cryptocurrency e.g., choosing the right cryptocurrency exchange. Marketplace Fairness made a list of the top Australian exchanges to help you find an exchange that is the best fit for you and your situation.

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Was this Investment Expected?

Back in January, Elon Musk changed his Twitter bio to #Bitcoin. He also speculated that digital currencies will be the “future currency of Earth”. However, despite the tweets and speculations, this huge investment still comes as a surprise to many.

What Does This Mean for Tesla Shareholders?

While it is hard to say what the long-term effects of this investment may be, Tesla shares are currently trading slightly higher than they were before the investment was announced. Fans of digital currency will likely appreciate Elon Musk’s attempts to diversify, while more cautious investors may be more wary of the venture.

It also raises question marks over whether Musk’s recent social media activity could be considered market manipulation. It could even expose Tesla to potential cyber-attacks or security breaches targeting the company’s Bitcoin holdings.

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Although there are a few concerns surrounding the investment, Elon Musk and Tesla believe that it will give them the flexibility they need to diversify and maximize their returns on cash.

How Did Elon Musk’s Investment Affect the Value of Bitcoin?

The price of Bitcoin has risen dramatically over the last few days, thanks to Elon Musk’s $1.5 billion investment. In fact, evidence suggests that the value of Bitcoin increased by over 13%, reaching an all-time high of over $44,000.

Thanks to Elon Musk’s $1.5 billion investment, we expect to see the value of Bitcoin continue to rise over the next few months as other investors flock in. Tesla was the first major company to invest in Bitcoin and many others are likely to follow suit. This will help to legitimize Bitcoin and reinforce its viability as a serious investment.

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Bitcoin Drops as China Declares Crypto-Businesses Illegal

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  • China declared that cryptocurrency-related businesses are illegal
  • Bitcoin, Ether, and stablecoin Tether do not qualify as legal tender in China
  • BTC drops in price as the announcement went out

Once again, China reiterated its antagonistic stance on Bitcoin and the cryptocurrency industry as a whole.

In an announcement, the People’s Bank of China (PBOC) mentioned that BTC, ETH, and USDT are not legal tenders in China. They added that these cannot be used in the currency market.

Additionally, the central bank deemed all crypto-related businesses as illegal. This includes overseas exchanges serving residents within China and derivative transactions.

Following the news, Bitcoin’s price fell by almost $2,000 as the news circulated. This has been a common pattern whenever China FUD comes out.

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Earlier, China also reiterated its stance on crypto trading and mining while testing the Digital Yuan. According to the PBOC, it will continue releasing regulatory pressure over the crypto trading industry.

Despite the negative news, many analysts remain bullish on Bitcoin and the cryptocurrency industry as a whole. According to analyst Lark Davis, this is not new and will happen again in the future.

In a tweet, Davis mentioned that “The year is 2025, #bitcoin has just corrected from 400k to 250k on China banning BTC fears.”

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Can Bitcoin Surpass $6,000,000? Ethereum and Polkadot Creator Details Possible Future of Crypto

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Early Bitcoin developer and co-founder of Ethereum and Polkadot, Gavin Andresen, is outlining a future where BTC rises to a staggering $6,000,000 per coin.

Gavin Andresen, who took over as Bitcoin’s lead maintainer from founder Satoshi Nakamoto in 2011, just published a new blog post detailing how BTC’s theoretical evolution could look.

Andresen describes a “possible” scenario where Bitcoin hits a price tag of $6,000,000 by 2061, transaction fees 326x higher than they are now, and the blockchain is used chiefly by whales.

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“Imagine: it is the year 2061. The BTC price is six million US dollars – equal to about a million 2021 dollars because of inflation.

Miners are being rewarded 0.006103515625 BTC per block, plus transaction fees of about 5 BTC for 4,000 or so transactions ($7,500 per transaction).

But most BTC transactions don’t happen on the BTC network. Most BTC is locked up in multi-signature outputs secured using multiparty computation and mirrored on another chain as ‘wrapped’ tokens.”

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In his scifi scenario, Andresen says those who do remain on Bitcoin’s network will be incentivized to keep it alive.

“The transactions that do occur on the main BTC network are high-value, mostly between super-whale-size holders…

These whales maintain the BTC network forever. They are the miners and the transaction creators; they don’t care how high transaction fees go, because they receive as many fees as they pay.”

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However, Andresen says that by 2100, even those users would likely leave the blockchain.

“In the year 2100 the whales notice that the mining reward is basically zero… Eventually, there are zero new BTC being produced on the BTC network, and zero BTC circulating on the BTC network. There is nothing left to secure, and the chain stops.”

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Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

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Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

Crypto trader Michaël van de Poppe is looking at what’s ahead for Bitcoin (BTC) and the smart contract platform Cardano (ADA).

The analyst tells his 420,000 Twitter followers that the best entry point for Cardano may be gone after the asset bounced off a key support level at $1.86.

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“If you want to get into Cardano, this was the region where you would want to get into it, and the higher low that might be created.

So based on the daily timeframe, the best entry might be gone, but you’re still getting a better entry than the ones who have been buying around $2.80.”

Van de Poppe is now looking to see if ADA can turn resistance at the $2.37 level into support.

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If the markets correct further, he is keeping an eye on the $2.15 level as a potential buy zone.

“When you’re looking at the four-hour time frame, I think you’re getting the exact same view as what you have right now on Bitcoin and [Ethereum], actually. So you’re going to look for an entry point which is around the fact of $2.15, so anything in this region might be a good entry point if we get a corrective move.”

Looking at the Bitcoin pair, van de Poppe thinks that ADA will most likely consolidate briefly after retesting support at its previous all-time high.

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“We can see that we’ve had a beautiful retest of the previous high here too, and therefore some consolidation is most likely going to take place before we’re going to have new impulse waves.

So both the USDT and BTC pair are looking for continuation, and I think that’s just great, and I think that’s just what we want to see with the markets right now.”

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