Elon Musk announced that Tesla has suspended accepting Bitcoin for cars, citing environmental concerns. The height of cynicism from Tesla’s TechnoKing, Emperor of Mars, and Dogefather.
When in March Elon Musk was pumping Bitcoin and announced that he would accept BTC as payment for new Tesla cars, he did not have the slightest idea how Bitcoin mining actually works.
And then suddenly, in just a couple of months, Bitcoin became too dirty for clean Tesla. Musk wrote: “We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of harmful gases into the atmosphere.”
“Cryptocurrency is a good idea on many levels, and we believe it has a promising future, but it cannot come at such a great cost to the environment. Tesla will not be selling any Bitcoin, and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use less than 1% of the energy per transaction that Bitcoin uses.”
Meanwhile, a poll conducted by Elon Musk on his Twitter — “Should Tesla accept Dogecoin as payment for cars?” — predictably resulted in 78.2% positive responses. But this entire poll was only needed to keep the DOGE hype going. Naturally, he is not going to accept any dog coins for cars.
A massive wave of market-negative news began. Following Elon Musk, who suddenly discovered environmental concerns about Bitcoin mining, the U.S. SEC, led by the new chairman Gary Gensler, who is considered crypto-friendly (the crypto dad), suddenly realized the terrible danger of Bitcoin’s volatility.
The U.S. Securities and Exchange Commission published a statement titled “Staff Statement on Funds Registered Under the Investment Company Act Investing in the Bitcoin Futures Market,” in which the agency announced that it would increase scrutiny of funds that invested in Bitcoin futures markets as part of their speculative strategies to maximize profits. The Division of Investment Management, the SEC unit that oversees mutual funds and other investment products, will be the body responsible for monitoring the conduct of these funds.
This and a number of other news items caused a significant drop in the crypto markets; Bitcoin fell to 000, and Ether managed to dip to the $3,500 level. So far, it has not been pushed lower, as there were strong buy walls there. The new dog coins lost up to 50% of their price.
But the overall backdrop of hysteria is such that, just before it began, billions of dollars worth of Bitcoin were sent to major exchanges to organize a coordinated attack. All previous and current events can safely be regarded as a coordinated attack on the so-called weak hands, ready amid the panic to get rid of Bitcoin and Ether.
