Cryptocurrency: Expert discusses Bitcoin’s success
At 11 a.m., Bitcoin was priced at $ 39,416. Musk tweeted at 12:07 p.m., and by 3:13 p.m. it had fallen to $ 38,532 – a drop of over 1.5 percent.
1.63 percent drops in just over an hour. Ethereum fell 2.2 percent from $ 2,442 to $ 2,388 over the same period. And the Dogecoin meme coin fell from a high of $ 0.314 at 8:15 p.m. to a low of $ 0.307 at 3:15 p.m.
The drop in cryptocurrency prices comes after Elon Musk responded to reports that Bitcoin is “greener” than critics say.
The entrepreneur and business tycoon hit back Jesse Powell, executive director of the Kraken crypto exchange, who said Bitcoin is “a lot greener than people think it is”.
Mr. Powell related Bloomberg TV on Thursday that Musk “has more to study” on the subject.
To the statement on Twitter, Musk replied, “Based on what data?”
Bitcoin saw its price drop this afternoon in response to comments from Elon Musk
Bitcoin’s price fell this afternoon
The Tesla CEO’s comment rekindled his reasoning that Bitcoin is polluting because of the “insane” energy consumption involved in the computational work that secures the network and creates new coins.
Last month, Mr Musk said his auto company will no longer accept Bitcoin as payment for its products because of concerns about how cryptocurrency mining is contributing to climate change.
He said in a statement, “We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which is the worst emissions of all fuels.”
The announcement sparked a sharp drop in the price of Bitcoin.
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Elon Musk posted the comment on Twitter
On Sunday, Mr Must said Tesla would resume Bitcoin transactions once it was confirmed that the miners were using reasonable clean energy consumption.
In a tweet he said: “If there is confirmation of reasonable (-50 percent) clean energy consumption by miners with a positive future trend, Tesla will allow Bitcoin transactions again.”
Mr Musk’s comments on social media about cryptocurrency often make prices go up or down.
New data suggests an estimated 2.3 million adults own cryptocurrencies, up from 1.8 million last year, according to the city’s regulator.
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El Salvador has approved an offer to make Bitcoin legal tender
The President of El Salvador, Nayib Bukele, supported the offer to make Bitcoin legal tender
As cryptocurrency ownership has increased, understanding appears to have decreased, according to the findings of the Financial Conduct Authority (FCA).
It has been warned that investing in cryptocurrencies is high risk and investors should be prepared to lose all of their money.
People invested around £ 300 on average.
The FCA cryptocurrencies can take many forms and some include Bitcoin and Ripple.
Tax rates in comparison
Earlier this month, El Salvador announced that it would be the first country to accept Bitcoin as legal tender.
She plans to use the virtual currency alongside the US dollar.
However, the World Bank has declined a request from El Salvador for help with the setup.
A spokesman said: “We are committed to helping El Salvador in a variety of ways, including currency transparency and regulatory processes.
“Although the government has asked us for help with Bitcoin, the World Bank cannot support this in view of the environmental and transparency deficiencies.”
Cryptocurrency prices have fluctuated dramatically after Elon Musk’s tweets
According to the new legislation, every company in El Salvador must accept Bitcoin as legal tender, unless this is not possible for technological reasons.
The proposal originally submitted by President Nayib Bukele was approved by Congress.
However, Bank of England Governor Andrew Bailey warned against “hard love” as cryptocurrency regulations tighten.
He said, “What we cannot have is a world where innovation is given a free pass to ignore public interest.
“The likelihood that such an approach will not end well is too high.”
Last month, Mr. Bailey described cryptocurrencies as “dangerous” and said investors should “only buy them if they are willing to lose all of their money”.
Express.co.uk does not provide financial advice. The journalists who worked on this article do not own Bitcoin.
Additional coverage from Emily Ferguson