Move Over Dogecoin—Tesla Billionaire Elon Musk Has Suddenly Sent The Bitcoin Price Sharply Higher


Elon Musk, CEO of Tesla TSLA, may no longer be the most popular tech billionaire in the bitcoin community, but he can still move the price of bitcoin.

Musk, who has alienated many in the Bitcoin space in recent months with his winking support for the “joke” crypto currency Dogecoin, pushed the Bitcoin price up sharply on Sunday afternoon.

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Tesla billionaire Elon Musk brought down the Bitcoin party earlier this year with a $ 1.5 billion bet … [+] the cryptocurrency, but has since turned to the “joke” bitcoin rival Dogecoin.

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“If there is confirmation of a reasonable (~ 50%) clean energy consumption by miners with a positive future trend, Tesla will allow Bitcoin transactions again,” wrote Musk on Twitter, responding to a Cointelegraph article about Magda Wierzycka, the managing director of South Africa, financial services firm Sygnia reported, “criticize[d] Elon Musk for [an] alleged Bitcoin pump and dump. “

“That is inaccurate. Tesla only sold ~ 10% of its inventory to confirm that BTC could easily be liquidated without moving the market, ”Musk said. In February of this year, Tesla announced that it had purchased $ 1.5 billion worth of Bitcoin and is still holding most of it on its balance sheet.

Estimates of what percentage of renewables currently power the Bitcoin network are contradicting. A recent report estimated that renewable electricity accounted for nearly 40% of the Bitcoin network’s energy consumption, but a previous study put the figure at just over 70%, largely due to the abundance of hydroelectric generators in southwest China and Scandinavia – both big bitcoin mining -Hubs.

Bitcoin price soared around 5% to $ 40,000 per bitcoin after Musk confirmed that Tesla plans to eventually resume its bitcoin support.

Bitcoin tumbled from its high of around $ 65,000 in April, with its sell-off compounded in May when Musk Tesla customers using Bitcoin to make purchases pulled the plug, citing the staggering energy demands of the Bitcoin network, which has increased in the last few months.

“Cryptocurrency is a good idea on many levels and we believe it has a bright future, but this cannot result in great environmental costs,” announced Musk in May, sending shock waves through the Bitcoin and cryptocurrency markets.

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Bitcoin price rose about 5% after Elon Musk’s tweet confirmed his plans to reboot … [+] Tesla’s Bitcoin Support as Cryptocurrency Improves Renewable Energy Use.

Coin base

In late May, Musk helped found the North America Bitcoin Mining Council, which brings together some of the largest bitcoin mining companies in the region with the goal of increasing miners’ use of renewable energy.

So-called Bitcoin miners are rewarded with newly minted coins for securing the Bitcoin network and validating transactions, which requires enormous computing power – more than the entire country of Finland, according to some calculations.

“[The North American bitcoin miners] obliged to publish the current and planned use of renewable energies and to ask miners [worldwide] to do this, “Musk posted on Twitter at the time, adding that he thought the development was” potentially promising “.

Meanwhile, Musk has given significant support to Dogecoin, a meme-based cryptocurrency originally developed as a “joke”, encouraging developers to submit upgrade ideas and agreeing that a proposal for Dogecoin over the Ethereum blockchain is “amazing” .