While everyone is trying to capitalize on digital currencies, here is Elon Musk, making a joke on Twitter which turned dogecoin, also created as a joke, into a sensational mainstream altcoin. He recently mentioned Shiba Inu, and it happened again creating another hype.
Musk has always been vocal on his view on bitcoins and different altcoins. Here are some of his views that are important to take note of when you are trading perpetual contracts on different exchange platforms.
1. The Poem
Elon Musk is famous for his controversial tweets and statements, and his recent tweet quoting an ancient Chinese poem caused quite the uproar.
Musk tweeted “Humankind”, followed by Quatrain of Seven Steps - a poem written by Cao Zhi during the Three Kingdoms period of China, spanned between 220 to 280 A.D. Cao Zhi used the poem to show intention in settling the power dispute with his brother Cao Pi. which serves as an allegory of getting along in modern-day.
While some speculate that he was referring to his recent exchange with David Beasley on poverty; others see it as his implication on the rivalry between Dogecoin and Shiba Inu. Or could it be implying a macro view on the clash of the financial system with the crypto space?
2. China’s crackdown on cryptocurrency
Source: Boss Hunting
Regulatory authorities around the world are contemplating solutions and measures on how to manage the disruption it may cause while its market and user base are steadily growing.
Earlier this month, Musk said that the government administration should “do nothing” amid the attempted interference of bitcoin and altcoin’s market.
The billionaire’s statement came amidst a crackdown by China on the mining of cryptocurrencies. “I suppose cryptocurrencies are fundamentally aimed at decreasing the power possessed by centralized governments,” said Musk.
3. Tesla’ investment in Bitcoin
Musk’s owned electric vehicle company Tesla filed to the SEC on its purchase of $1.5 billion dollars worth of Bitcoin this February, which also broke the news that it will accept Bitcoin as payment.
Tesla later increased its holding of Bitcoin up to $2.5 billion in the next quarter even when its bitcoin payment implementation was postponed due to due diligence and legal issues.
Musks restated, in July when bitcoin plugged through the 30k price point, that Tesla is getting ready to accept bitcoin payment again, which stimulated the 60k price point.
The real issues behind Musk’s “Mic Drop”
Source: The Economic Times
When the government can’t destroy cryptocurrency, they can only join in via regulating it.
Musk’s moves came in the wake of governments around the world trying to come up with laws and restrictions to manage and regulate cryptocurrencies in their country - including the US Securities and Exchange Commission (SEC) which has issued statements on regulating stablecoin, after the report on stablecoin published by the US Treasury on 1 Nov.
Other than stablecoin, Bitcoin alone has seen exponential progress in the last few years where it has gained a market cap of more than $1 trillion and most recently reached a new all-time high of more than $66,000 per token.
The ripple effect of Musk’s move revealed bigger issues which have always been submerged under the lucrative market, where what was said is finally made to be done by regulators where market watcher had to keep a close eye on.
On the other hand, El Salvador’s adoption of bitcoin as a legal trading currency tender even several nations still remain conflicted on whether to allow cryptocurrencies or launch their own, which their government regulators can have some oversight and have control over.
An estimation of the crypto market capitalisation has already surpassed $2 trillion as a whole. Add all of this to the growing number of users who have invested real-world funds into it.
Musks specifically mentioned that though countries like China are having a crackdown on crypto, people are more likely to find ways to enter the highly volatile yet greatly lucrative market.
As we all know all the transactions and processes work were based entirely on the shared work of the Internet using simple devices like smartphones. Therefore, it would be a terribly difficult task for any government to wipe out the crypto trade market entirely.
However, a study of 2019 by scientific journal Joule published a study stating that Bitcoin production is estimated to have produced between 22 to 22.9 million metric tons of CO2 emissions a year in the coming future.
The effect of Bitcoin mining on the global environment has raised a lot of concerns around the world, and while countries like Russia and China have virtually banned the crypto realm, places like El Salvador and Miami in the US are trying to find clean energy sources and solutions to facilitate crypto mining.
***Please do your own research before investing in any crypto products***
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. C-Trade, its affiliates, agents, directors, officers, or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.