September 30, 2022

If Bitcoin Was Dependent on the Likes of Elon Musk– it Would Have Failed (Opinion)

6 min read

The previous week was quite the rollercoaster in the cryptocurrency market – – both in terms of price and belief.

And by belief, I suggest the neighborhood’s love to among the most influential, popular, and abundant individuals in the world. Obviously, I’m speaking about Tesla’s CEO – – Elon Musk

. Before I go in details with my viewpoint regarding why I believe Bitcoin doesn’t require him (or anyone else of his kin, for that matter) and if it does – – it indicates it stopped working, I’m going to offer a short overview on what took place that triggered bitcoin’s price to drop so greatly in the previous couple of days.

What the Hell Happened?

Elon Musk’s relationship with Bitcoin is one that went through quite a few phases. It’s crucial to differentiate, though – – as he himself stated, he draws a line in between specific possessions and crypto in basic.

Without going excessive back in time, let’s see what took place in 2021. In January, he put Bitcoin as the only word in his Twitter bio.

Elon Musk’s bio as #bitcoin. Source: Twitter It was likewise around that time when he said that he

does not mind earning money in the primary cryptocurrency. In February, he continued showing his positivity on Bitcoin.

“I was a little slow on the uptake … I do believe at this point that bitcoin is a good idea.” – – He said, adding that he’s a fan.

It’s worth keeping in mind that, at that time, the overwhelming majority of individuals were highly enthusiastic that one of the brightest minds of our generation has actually jumped on the bitcoin bandwagon.

Right around that time, Tesla, the company that Musk leads, revealed a massive $1.5 billion BTC buy, sending the price to a brand-new all-time high and ending up being the stepping stone for what would later end up being an even more outstanding surge.

At the time, though, Musk threw one remark which raised a few eyebrows. It came as a response to a Bloomberg interview of Changpeng Zhao – – the CEO of Binance.

“Tesla’s action is not directly reflective of my opinion. Having some Bitcoin, which is merely a less dumb type of liquidity than cash, is daring enough for an S&P 500 company.”

It’s also worth keeping in mind that during all this time, Musk has been heavily pressing Dogecoin (DOGE) – – a meme-inspired cryptocurrency with little to no development activity in the past couple of years, which was admittedly developed as a joke.

Nonetheless, a month after its bitcoin buy, Tesla likewise announced that the business will accept bitcoin payments for its vehicles, sending out the rate yet in another considerable advance.

Everything was going fantastic for crypto supporters, and few were those who were worried about Musk’s involvement in the field – – on the opposite, many called for other business that will follow Tesla’s example and add BTC to their balance sheets.

The U-Turn

In retrospection, it might have been inevitable. See what I did there? Obviously, not many were those who were expecting a complete u-turn of the kind, though going back through the history of events might have hinted that we had this coming.

A few days earlier, on May 12th, Tesla announced that it had actually stopped accepting bitcoin as payment for its items. The business cited environmental interest in the mining process, and Musk was really quick to support it.

Quickly enough, the Bitcoin community responded in a somewhat expected yet(in my viewpoint) unfortunate way. Supporters started calling Musk a hypocrite for creating government-subsidized vehicles while utilizing nonrenewable fuel sources to send his rockets to deep space.

While he didn’t truly bat an eye for a couple of days, it seems that people got under his skin. The tipping point began May 16th when Musk reacted to a question pinning Bitcoin and Dogecoin against each other. He stated that if DOGE handles to “speed up block time 10x, increase block size 10x & & drops cost 100x – then it wins by far.”

This fired up the community much more. Following up were a couple of comments on Peter McCormack’s Twitter thread that he viewed as “obnoxious” and making him “wish to go all-in on Doge.”

Furthermore, Musk said that “Bitcoin is actually extremely centralized, with supermajority controlled by a handful of huge mining (aka hashing) companies.” His inflammation was evident in another of the answers under the very same thread:

Things Escalated Quickly At this point, it was ending up being quite apparent that Musk’s tweets have a direct effect on bitcoin’s cost, which was bleeding at the time.

Lots of shared the viewpoint that bitcoin proponents should not piss off Elon Musk because of price implications. And, to clarify, I do not share this belief – – if Musk is spreading out false information or, at the very least, highly questionable truths without serious research, he needs to be called out for it, regardless of what it does to bitcoin’s price. However more on that later.

Musk also went so far regarding agree with an account that lots of in the neighborhood consider to be a fraudster.

He later on validated that Tesla had not offered any bitcoins.

Down to the Issue

Bitcoin does not need to rely on Elon Musk any longer, so that it needs any other billionaire backing it. Bitcoin was here long prior to Musk began getting involved openly in cryptocurrency and long prior to Tesla accepted it for payments and put it on its balance sheet.

Bitcoin was here before Michael Saylor began backing it and prior to MicroStrategy purchased nearly 100K of it.

Bitcoin was here prior to Paul Tudor Jones invested in it and prior to Anthony Scaramucci began shilling it.

Bitcoin went through massive obstacles in the face of a few hard forks, and the marketplace consensus is as conclusive as it gets. Despite the recent drop in bitcoin’s supremacy, it’s still worth 40% of the whole cryptocurrency market.

But we’re in a bull market. In a bull market, individuals tend to forget fundamentals and focus on cost. This caused the glorification of people who’ve done little to nothing to push bitcoin forward (do not read everybody from the abovementioned, I do not necessarily imply any of them).

Catering to the impulses of a bachelor or company is just as bad as being centralized. Bitcoin is sound money that users can take complete custody of and still be quickly portable and verifiably scarce. And it definitely does not need billionaires backing it. Keep in mind – – people alter their minds, and Musk is the perfect example.

Whether he knew of bitcoin’s “mining issues” in advance or not is definitely unimportant – – the fact is that he has a serious platform to voice his viewpoints, and his opinions move markets, and more significantly – – they influence individuals.

I may not necessarily concur with everything McCormack said and the tone he used (though entertaining, I can likewise see how it can be taken as an offense), but he’s 100% right about one thing – – Elon Musk is erasing hard work without putting in the research study.

The Other Issue

Each and every single post that Musk puts on Twitter is definitely swarmed by crypto-related comments. This reveals the state of affairs at the moment – – the market is saturated with people who fixate on something only – – “when moon?”

The reaction to Musk’s bitcoin remarks was also completely shocking for me. The toxicity coming from a few of the most popular BTC advocates was downright baffling to me.

If I understand one thing about conflicts, it’s that using advertisement hominem arguments means you lose.

* The above is the sole opinion of the author. Featured image courtesy of Financial Times