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Tim Draper defends Bitcoin and criticizes Elon Musk’s stance

Tim Draper has issued a belated response to Elon Musk’s decision to withdraw Bitcoin (BTC) as a payment option at Tesla.

The global investor and billionaire, who has founded several companies, including venture capital firm Draper Fisher Jurvetson (DFJ), responded to Elon Musk’s environmental point of view on BTC, referring to the energy and carbon dioxide implications of the system. current banking.

On Twitter, he suggested that Musk should not accept fiat currencies as a means of payment for his cars.

Elon Musk and Twitter

Elon Musk and Twitter

Elon Musk announced on May 12 that his company Tesla had suspended vehicle purchases in BTC.

In a statement he tweeted, he made it clear that while cryptocurrency is “a good idea on many levels” and that the future is promising, the future “cannot have a great cost to the environment.”

He referred to the fossil fuel emissions involved in mining Bitcoin.

In the tweet, which was the first in a thread, also emphasized that Tesla intends to retain its BTC and will use it in transactions in the future, once mining is a more sustainable source of energy.

The tech mogul clarified a day later, to reiterate how much he believes in cryptocurrencies. However, his stance has been attributed to the recent decline in the price of BTC.

According to data, BTC has been on a steady slope since May 14, falling below the $ 50,000 threshold. He has struggled to cross that threshold again since the morning of May 15.

BItcoin plummetsBItcoin plummets

BItcoin plummets

Elon Musk’s effect on cryptocurrencies

This, in turn, is yet another example of Elon Musk’s influence, or the so-called “Musk Effect.”

In recent weeks, the CEO of Tesla and SpaceX has become famous for affecting the prices of cryptocurrencies with your activity on social media. In particular, the performance of Dogecoin (DOGE).

Your tweets have previously impacted the increase in the price of DOGE, which is up about 20,000% this year.

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Musk DogecoinMusk Dogecoin

Musk Dogecoin

After a series of all-time highs, DOGE finally had something of a fall from grace.

Musk’s appearance as a Saturday Night Live host on May 8 caused a sell-off causing the price to drop from $ 0.66 to $ 0.50 in the space of 45 minutes.

It continued to decline throughout the day, but has since regained some of its position. At the time of writing this article, the data indicated that DOGE remains firmly above the $ 0.50 threshold.

Dogecoin (DOGE)Dogecoin (DOGE)

Dogecoin (DOGE)

BTC advocates express their support

Draper is the latest high-profile figure for the world’s largest cryptocurrency. While BTC’s performance is not the best at the moment, the financier and investment advisor Anthony Scaramucci regards it as “the main predator” of digital currencies.

The founder of SkyBridge Capital said that advises his clients to own 1-3% in BTC to avoid getting lost.

Meanwhile, financial services company Square also took a stance on BTC in light of Musk’s decision.

Square invests 50 million in BTCSquare invests 50 million in BTC

Square invests 50 million in BTC

They indicated that their position was more in line with Tesla’s; that they won’t buy any more BTC until the fossil fuel emissions issue is addressed.

That said, Square executives are still supporters of BTC. Co-founder Jack Dorsey stated on Twitter that Square “will always work to improve Bitcoin.”

The post Tim Draper defends Bitcoin and criticizes Elon Musk’s stance was first seen on BeInCrypto.

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