Elon Musk, Tesla’s chief executive, came under fire over the weekend when he revealed that the company had decided to stop accepting Bitcoin payments due to the excessive power consumption required for Bitcoin mining.
The announcement triggered a massive drop in the price of Bitcoin, where the cryptocurrency went from a high of $ 57,939.36 to a low of $ 42,284.57 in a matter of 7 days. Based on recent trends, Bitcoin has now spent three months bouncing between $ 40,000 and the psychological level of $ 60,000.
Peter Schiff’s critique
While the entire crypto twitter was busy criticizing Elon Musk and Tesla for manipulating the market, Peter Schiffa took the opportunity to reiterate his thoughts on Bitcoin and the cryptocurrency ecosystem. The gold bull had long criticized cryptocurrencies for being a bubble in general. This time, Schiff pointed out that the fact that a man and a tweet can exert such a massive influence on Bitcoin is an indication that buying Bitcoin is more of a gamble. He said:
“If a single tweet from @elonmusk can have so much influence on the price of #Bitcoin, how can anyone seriously consider it to be money? How can Bitcoin be a safe-haven asset if a one-word tweet puts you at risk? By now it should be clear that buying Bitcoin is gambling, not investing. “
The relentless critic also pointed out that there will come a “I told you so” moment as the price of Bitcoin still has a long way to go.
Unique but with obvious flaws
Proponents of Bitcoin may oppose Peter Schiff and his tireless efforts to beat Bitcoin, yet many agree with him that despite the currency’s uniqueness, certain centralized factors can influence the price action of Bitcoin. the nascent digital currency and asset class.
From the centralization of mining activities in China, which affected the industry when the Xinjiang province was flooded, to the massive influence of Musk, there is a growing consensus among stakeholders that the Bitcoin narrative has yet to change slightly to achieve the maturity. New players are encouraged to start Bitcoin mining, preferably using green energy, while many have raised the question of whether Elon Musk’s tweets can potentially be seen as market manipulation, as Bitcoin is hit hard every time. the billionaire comments on him via Twitter.
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