Elon Musk, the self proclaimed ‘Dogefather’, acted more like the ‘FUDfather’ when he Tweeted the following.
Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.
Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at a great cost to the environment.
Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/ transaction.
Elon’s Tweet sent the price of Bitcoin in a downward spiral, dropping from $54,658 to $46,980. At the time of this article the price has risen past $50k, but this was definitely an annoyance to a strong week of crypto. As a result altcoins followed suit leading to a dismal day in the crypto space.
Our Take
We find Elon’s comments confusing on many levels. I can appreciate his stance on the environment, but this seems like nothing more than a strategic game by the ‘Technoking’. He has been a supporter of Bitcoin and in February he disclosed that Tesla had purchased 1.5 billion in Bitcoin. Do you really think that someone who has so much skin in the game is going to tank BTC? The easiest thing to do, is to spread FUD (fear, uncertainty, doubt), so that the price dips and he can accumulate more Bitcoin. Furthermore by spreading FUD, it also gives him leverage to try and manipulate the price of Dogecoin through social media. Elon owns around 2.6 billion in Dogecoin, and most of this was purchased for <$0.01. In my eyes, he is truly the Puppet Master….. FUD Master…… FUDfather!
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