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Bitcoin price reacted immediately to Elon Musk’s announcement earlier in the day that Tesla would not accept digital currency payments for its electric cars, dropping nearly $ 8,000 within hours.
In the past 24 hours, the price of the leading digital currency fell from $ 57,470 to $ 48,900, after this news the currency is trying to recover strongly.
For several months now, Tesla and SpaceX CEO Elon Musk has continued to praise the crypto industry, as the world’s favourite billionaire has consistently supported cryptocurrencies. Elon Musk has been tweeting positively for cryptocurrencies for years, but he’s already started in Participation in 2021.
Earlier this year, the electric car giant (Tesla) announced that it would accept crypto payments, and it also invested about $ 1.5 billion in Bitcoin, and Musk himself admitted to owning some bitcoins personally at some point. Especially for his close ties to the cryptocurrency Dogecoin (DOGE) which he has promoted on a daily basis for a certain period of time.
Looking at all of that, it was a huge shock in the crypto community when Musk recently announced that Tesla would no longer accept payments in the leading digital currency, and according to him, he said the decision was due to environmental reasons, as Bitcoin mining is not environmentally friendly.
Mining and extremely carbon-intensive transactions are at odds with what Tesla stands for. Musk’s change of stance came just a few weeks after he argued that adopting bitcoin could be a boon to renewable energy.
It is understood that the industry is currently full of confusion and anger, although Musk’s announcement continues to claim that cryptocurrency is a good idea on several levels and that it has a promising future, Moreover, it is worth noting that Tesla continues to stick to its bitcoin investment, which has been mentioned, also through the announcement, where Musk said that Tesla has no plans to sell, but rather to be used in transactions once mining moves to more sustainable energy.
Some argue that Musk is trying to manipulate the market, which, of course, has been met with a lot of anger, however, the announcement itself appears to be a push towards a more environmentally friendly solution to Bitcoin mining.
Finally, there are also theories that this is another trick to push Dogecoin forward, as it is Mask’s currency of choice and has a much smaller carbon footprint.
Bitcoin has certainly seen its fair share of ups and downs in recent weeks. One of the recent catalysts that pushed the currency higher was Tesla’s announcement that it would accept Bitcoin as a payment method for its cars, giving this more reason to believe that digital currency can act as a means of payment in major companies.
However, through Tesla’s recent major update and its reluctance to pay in cryptocurrency, we have seen prices drop, and despite this, there are still those who believe and accept the leading digital currency.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
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