Why Elon Musk was WRONG about Bitcoin

When Elon first tweeted about how Tesla was going to Buy Bitcoins, everyone in the crypto sphere went berserk. People rushed in and stocked up on Bitcoins and other Altcoins. The crypto market gained more than USD 500 Billion in valuation and most cryptos reached their all-time high prices. After those good days, came the storm: Elon went back on his decision and said that Tesla will stop accepting Bitcoins. This led to a wipe The reason was pretty unclear, and Elon went on to justify the decision by saying that Bitcoins are not eco-friendly…Like, this guy suddenly changed his stance based on something that didn’t change. Why did the “Elon Bitcoin” subject matter to the crypto community?

Well, it all has to do with “sustainability”. This is basically a big word, but if you think of it in a simple way, it’s basically being able to produce “more with less”. With Bitcoin’s case, it requires a massive amount of energy consumption to be able to run the blockchain and keep it stable. But why did Elon change his mind?

Was Elon Musk’s changed stance convincing?

 

Everyone was shocked when they first read Elon’s tweet about Tesla disowning Bitcoin. Elon stated that Bitcoin was not sustainable, and it consumed massive amounts of energy in order to keep its blockchain alive. But let’s dive deeper into this topic. From Tesla adopting BTC to Tesla disowning BTC, nothing changed with Bitcoin’s fundamentals. It was still the same cryptocurrency that consumed energy.

 

BTC/USD 1-day chart showing the effect of Elon's tweets on BTC
Fig.1 BTC/USD 1-day chart showing the effect of Elon’s tweets on BTC – TradingView

 

In fact, while some people thought that BTC will fail, Bitcoin merely returned to its February levels before Elon’s tweets. This shows that the high pump was basically people who entered in tandem with Tesla, mainly newbies and other fundamental traders.

Elon’s stance is not convincing at all, as Bitcoin never changed fundamentally. In addition, Elon is the one who should be questioned whether his inventions are eco-friendly or not.

We might debate SpaceX’s mission statement, but what about his inventions at “The Boring Company“? His flamethrower that made no sense other than being “cool” is far worse.

Bitcoin is STILL a better Alternative than Legacy Commodities

If Elon really doesn’t like Bitcoin because it is not eco-friendly and sustainable, what about batteries that his company Tesla uses? Whole industries are on top of battery productions, and in turn use fuel, coal, carbon or graphite, metal oxides, and lithium salt. Are those materials eco-friendly?

What about Gold excavation? An interesting article breaks down how much Gold mining in Africa costs versus Bitcoin. It also takes into account the humanitarian disasters that comes with such filthy industries, that exploit humans and even childrens. How can someone even compare Bitcoin’s blockchain which only uses energy?

Yes energy comes from fuel maybe, but also from other sources such as solar, wind and water. So mining Bitcoin in the future when we have alternative energy is still doable, but creating batteries, mining real gold and fuel extraction are not.

Conclusion

Elon’s decision to turn away from Bitcoin is not convincing at all. One might even think that he’s trying to divert the crypto community to his side. Additionally, putting Bitcoin on his Twitter account, then forgetting about it to support Doge was an interesting turning point, where one could’ve kinda predicted how Elon shifted away from Bitcoin. Will Elon successfully back Doge to become the go-to cryptocurrency?

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