Bitcoin has seen numerous ups and downs in its price since its introduction to the world. When Elon Musk entered the cryptocurrency scene with his witty tweets, it shed a whole new light on Bitcoin. If you have not kept up with the recent happenings in the cryptocurrency market or followed the founder of Tesla on social media, you might question Elon Musk’s obsession with Bitcoin.
That’s right. The famous Elon Musk has a long and confusing relationship with Bitcoins, so let’s examine that to understand his obsession.
An on-and-off relationship
Since November 2017, many netizens have speculated that Musk is the mysterious founder of Bitcoin. This is not as far-fetched as it seems because Musk has proven his abilities in innovation with companies like SpaceX, The Boring Company, and Open AI. Better yet, he had co-founded PayPal, a pioneer in online payment processing, back in 1998.
As speculations arose, Elon Musk denied being Satoshi Nakatomo, the founder of Bitcoin. He went ahead to say that even though he is not into the industry of cryptocurrency, it might be a good thing. The next few years saw Musk rapidly changing his opinion on Bitcoins. From claiming that cryptocurrency could be used for illegal transactions, he was quick to invest almost US $1.5 million in Bitcoin and accepted 50% of Tesla’s payments in digital currency.
Soon enough, he took his words back by saying that the energy consumption of the altcoin bothered him. He also supported his partner, Grimes, as she sold her digital art via blockchain technology. Moreover, Elon Musk’s relationship with Bitcoin has also been intertwined with his support for Dogecoin.
What does all this mean for digital currency? And how are Musk’s tweets involved?
Musk and Bitcoin impacting the market
All it takes is Elon Musk to add ‘#bitcoin’ to his Twitter profile and Bitcoin prices surge, sometimes even hitting record rates. Analysts claim that the social media drama about cryptocurrency and Musk is taking away investor’s attention from the downtime that Tesla Inc is going through. Tesla might be facing a lull mostly because of their prior refusal to accept Bitcoins as payment. In today’s economy where digital currency is driving investing trends, exemption of Bitcoins as a payment option is sure to create a hitch.
Perhaps this realization might have led Musk to accept Bitcoin payments once the digital currency utilizes clean energy 50% of the time. Another factor contributing to Musk’s Bitcoin craze could be his investment in altcoins. As he sells his crypto shares and tweets about it, other investors are quick to follow in his steps, leading to surges and slumps in Bitcoin prices. Many analysts believe that this is a strategy that Musk employs to reap more benefits from his investments.
Yet, is Musk responsible for the volatility of cryptocurrency? Does that make Bitcoin a failure as a currency?
Truth be told, Elon Musk has only a small role to play in the way cryptocurrency trade goes. Back in 2009, when Bitcoin hit the floors, it only saw a surge in price in 2010. After much more crashes and surges, the market picked up in 2022. As Bitcoin hit an all-time high in February of 2022, it was noticed that the assets were overbought. This meant that a markdown was inevitable, regardless of Elon Musk’s and Tesla’s announcements. This is the natural course that investments take and is necessary for it while considering the bigger picture.
Elon Musk’s concern about Bitcoin’s environmental impacts did affect the sentiments of its investors but even after the fall in Bitcoin values this year, it is still 300% higher than last year. Long story short, despite all the PR that Musk creates for Bitcoin, the crypto community still believes that Bitcoin is an asset worth investing in, and has no doubts regarding BTC’s efficiency as a currency.
Should you invest in Bitcoin?
As innovators like Elon Musk express their opinions on digital currency, a whole new group of individuals gets interested in its potential. People who are new to the crypto scene can take a look at platforms like Immediateedgepro to receive the best rates and information as they find their footing in the world of digital currency.
Even though the concept of Bitcoin was introduced for daily transactions, it has only been used for that purpose in a few scenarios. For its revolutionary changes like removing intermediaries from the equation, Bitcoin enables better economic activity in fields of banking, supply chains, and development. This made cryptocurrency a promising concept, especially for those who support a future of technology.
Since Bitcoins are in limited supply, capped by mathematical algorithms, their value cannot be influenced by the government, nor can it be confiscated by them. Especially if you live in a country with explosive inflation like Venezuela, Bitcoins can help you store your assets as well as carry out your daily transactions. As the world economy was thrown off-key by the pandemic, maybe you should consider investing in digital currencies.
Before placing your bets on Bitcoin, understand the risk that comes with investing in altcoins. The best security measures sometimes fail in the face of phishing scams and hackers when it comes to cryptocurrency. Research on all the possible ways in which you can secure your funds as BTC before investing in them. Once you lose your funds to online thefts, it is nearly impossible to trace them.
So to answer why Elon Musk is obsessed with Bitcoins, it is simply a case of early investment in prospects that are going to be huge sooner or later. Furthermore, reports indicate that Bitcoins have a significant impact on Musk’s other endeavors and all his actions are strategies to maximize his profits. As far as Musk is concerned, it is evident that he holds shares as different types of crypto coins. Bitcoin, being the first one and the most popular of them, is subjected to the public eye more than the others.