Bitcoin – as well as Dogecoin and other cryptocurrencies – have lost value after a critical tweet from Elon Musk.
The Tesla boss said his company would no longer use Bitcoin as a means of payment for cars, which would cause the price to fall and take away other major currencies.
Mr Musk said environmental concerns about the cryptocurrency were too strong, but didn’t rule out supporting it again if its energy use became more sustainable.
“Cryptocurrency is a good idea on many levels and we believe it has a bright future, but this cannot result in high costs for the environment,” he wrote in a long statement posted as a tweet.
This means that not only has Bitcoin fallen sharply, but other currencies – including Dogecoin, which is actually heavily promoted by Mr Musk – have seen their prices fall. Of the ten largest cryptocurrencies, all but one fell sharply on Thursday morning, according to the tracking website CoinMarketCap.
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Musk calls energy use “crazy” in recent critical tweets
Elon Musk tweeted again, calling Bitcoin’s energy usage “insane”. Oddly enough, it doesn’t seem to have particularly affected the price.
Andrew GriffinMay 13, 2021 11:22 am
Tesla announcement draws attention to itself
It’s not the first time in the past few months that a viral post has drawn attention to Bitcoin’s environmental cost. In March, a video showed a cryptocurrency mine plugged into an oil well – and was criticized as a perfect example of the damage digital currencies can do.
Andrew GriffinMay 13, 2021 10:33
Crypto billionaire donates to India’s Covid fight – and coins crash
Cryptocurrency billionaire and co-founder of Ethereum, Vitalik Buterin, made one of the greatest single philanthropic contributions of all time by donating over $ 1 billion worth of Ethereum and “meme coins” similar to Dogecoin to the Indian Covid battle.
Unfortunately, the value of the donated currencies began to plummet immediately after the gift was announced, significantly reducing the total contribution.
On Wednesday, Buterin, the 27-year-old co-founder of Ethereum, announced that he had donated nearly $ 1.5 billion to a number of nonprofits, some from the more stable Ether.
Andrew GriffinMay 13, 2021 9:35 AM
The announcement comes days after Musk teased support for Dogecoin
Dogecoin may have an impact on the environment, but it is much cleaner than Bitcoin. There is no evidence that the two are linked at all or that one cryptocurrency replaces the other.
But these two tweets are now side by side on Mr Musk’s timeline – which is, not least, a remarkable contrast.
(Twitter / Elon Musk)
Andrew GriffinMay 13, 2021 8:17 AM
Bitcoin is starting to recover after a few turbulent hours
Bitcoin has repaid some of the losses it suffered following Mr Musk’s announcement. (It had a couple of negative days and it fell before the mail.)
It had traded about $ 54,600 just before he posted. It fell as much as $ 47,000 after he did it. But now it’s back to around $ 51,350.
That still means it’s down more than 10 percent in the past 24 hours.
Andrew GriffinMay 13, 2021 8:03 AM
Hello and welcome
… to the live coverage of The Independent on the cryptocurrency market.
Andrew GriffinMay 13, 2021 7:49 AM