June 23, 2021

Pompliano Explains Elon’s Bitcoin Bombshell As A Tesla Marketing Ploy

3 min read

As the dust settles on Tesla withdrawing Bitcoin as a payment choice, the neighborhood is awash with speculation over what happened.

On that, Bitcoin-bull Anthony Pompliano chimes in with a theory that the other day’s bombshell was the start of an elaborate ploy to usher in new technology from Tesla.

Pompliano Gives His Take On The Bitcoin FUD Markets tanked on the FUD, with over $400 billion rubbed out the total market cap during the height of the sell-off. A day on, and purchasers have actually appeared, causing a bounce-back of sorts. Standout efficiencies from Dogecoin and Polygon blaze a trail today. But Bitcoin posts a modest 2% gain at the time of writing.

The whole occurrence set off as a result of Elon Musk launching a statement saying his company has worry about the increasing use of nonrenewable fuel sources, particularly coal, in Bitcoin mining. Due to this, they chose to stop accepting BTC as payment for their automobiles.

Lots of observers explain that Musk’s actions make no sense. Generally because he must have already understood Bitcoin’s high energy intake and purported use of coal in the mining process. As such, why greenlight a $1.5 billion BTC purchase earlier this year?

In describing this, Pompliano stated, despite the FUD, Elon Musk is still long Bitcoin to the tune of billions of dollars.

He likewise dismissed claims that BTC mining is environmentally harmful, saying three-quarters of miners utilize renewable resource sources. This is since renewables sources are the cheapest type of power, meaning miners are incentivized to go this path.

“The realities are overwhelming 75% of miners use some type of renewable energy. And the factor is due to the fact that the monetary reward is for miners to go around the world and find the most affordable power.”

Is Tesla Moving Into BTC Mining?

Pompliano mentions that Musk is aware of the research on Bitcoin running primarily on sustainable power.

In discussing the FUD, he speculates that the whole occasion was the prelude to introducing some type of brand-new eco-friendly innovation, including that this might be mining devices.

“And I think what we’re going to see here, this is going to be a releasing pad for Tesla to ultimately introduce a sustainable power mining rig. Or some sort of mining devices. So I think this is some sort of a market tactic by Tesla, accentuate the concern and develop a service and kind of conserve the day.”

However, others are not persuaded. The closing statement on Musk’s FUD tweet discussed looking at option, less power-hungry cryptocurrencies.

Significant Proof-of-Stake (PoS) projects, including Cardano, bucked the other day’s market downtrend. As most tokens fell in cost, ADA went the opposite direction, even handling to post a new all-time of $1.97.

PoS jobs operate by a random selection process that alters choice towards the most significant stakeholders. This contrasts with intense Proof-of-Work mechanisms that count on completing to resolve cryptographic hashes.

Bitcoin daily chart YTD

 Source: BTCUSD on TradingView.com