Elon Musk suspends payments using the cryptocurrency.
I woke up this morning to the news that Elon Musk had announced that Tesla will not be accepting Bitcoin for Tesla cars due to “environmental concerns.”
The market, as predicted, panicked and is in the midst of another huge sell-off. Bitcoin miners are down. Bitcoin is down. Ethereum is down. Many cryptocurrencies are down.
Is this really the end of Bitcoin?
No, it’s not.
Elon Musk is a smart guy; we all know that. Why, all of a sudden, is he now concerned about the impact of Bitcoin mining on the environment?
The truth is it’s likely he’s not.
According to Coinshares, who conducted research into the Bitcoin mining network, 74.1% (a conservative estimation, according to the paper) of the energy powering the Bitcoin mining network was done through renewable energies.
Musk knows this. It’s why less than a month ago, he agreed with Twitter CEO Jack Dorsey that Bitcoin incentivises renewable energy.
What’s the real reason for Musk’s surprise announcement?
It was less than a year ago that Musk tweeted, “Tesla stock price is too high imo”In short, he wants to buy more Bitcoin(at a lower price, of course).
Musk is no stranger when it comes to using his influence for his benefit.
What happened when he tweeted this? Tesla stock fell by 12% in half an hour.
While it’s impossible to prove, it would be foolish not to think that Elon Musk bought more Tesla shares in the wake of this “dip.”
Why would he not? If he believes in his company’s vision for the future (which he should), then he should purchase more Tesla stock in a market sell-off.
It’s why I think he’s doing the same with Bitcoin. Musk wouldn’t purchase $1.5 billion worth of Bitcoin in February without understanding its potential impact on the environment.
What does this mean for me?
Well, for me, it’s another buy opportunity. I wouldn’t be surprised if, in a few months, Musk suddenly discovers that Bitcoin is not as harmful to the environment as he made out and that Tesla will once again be accepting Bitcoin payments.
The key part of Musk’s statement comes in the last paragraph.
“Tesla will not be selling any Bitcoin”
This should tell you everything you need to know. If Musk was serious about the impact that Bitcoin mining has on the environment, he would want to offload it as soon as possible and cash out on any profits made since their huge $1.5 billion purchase back in February.
If anything, I’m even more excited about the future of this currency. As the weak holders of Bitcoin sell-off, the ones who remain make the cryptocurrency even stronger, which will drive up prices even higher in future.
I’m going to continue HODLing for now. Musk can’t change that because I know he’s playing 5D chess while the rest of us are playing checkers.
The question is whether you will see the opportunity through Musk’s smoke and mirrors?
This article is for informational and entertainment purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Any opinions expressed are solely the authors. Consult a financial professional before making any significant financial decisions.
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