Bitcoin jumps 8% after Elon Musk says Tesla "likely" to start accepting it again, confirms...

midian182

Posts: 6,916   +62
Staff member
What just happened? The price of Bitcoin has surged after Elon Musk said that Tesla would "most likely" start accepting the crypto as payment again. After falling under $30,000 for the first time since January 1, BTC has jumped to $32,000 at the time of writing.

Tesla played a big part in Bitcoin's bumper year so far by announcing a $1.5 billion investment back in February. The firm also said that it would accept the virtual currency as payment for its products. But CEO Musk backtracked in May, suspending Tesla customers' ability to use the cryptocurrency when purchasing one of the company's EVs due to concerns over its impact on the climate.

Musk, long accused of having too much control over the price of cryptos, sent Bitcoin up in June when he said Tesla would start accepting it again once miners used more clean energy. At the virtual B Word conference yesterday, Musk reiterated: "I wanted a little bit more due diligence to confirm that the percentage of renewable energy usage is most likely at or above 50%, and that there is a trend towards increasing that number, and if so Tesla would resume accepting bitcoin."

"Most likely the answer is that Tesla would resume accepting bitcoin."

Bitcoin fell below $30,000 earlier this week, but Musk's comments pushed it up 8% to around $32,000.

Musk's image as an environmentalist often hasn't aligned with his embracing of crypto, much of which is mined using huge amounts of fossil fuels. "Tesla's mission is accelerating the advent of sustainable energy. We can't be the company that does that and also not do appropriate diligence on the energy usage of bitcoin," he said.

Bitcoin took another hit in May when Musk appeared to suggest Tesla had sold some or all of its BTC holdings, though he later clarified this wasn't the case. The billionaire yesterday reaffirmed that Tesla still owns Bitcoin, as does Space X. Musk added that he personally owns Bitcoin, Ethereum, and Dogecoin.

"I might pump, but I don't dump. I definitely do not believe in getting the price high and selling […] I would like to see bitcoin succeed," Musk said.

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fps4ever

Posts: 686   +906
This smug arse belongs to prison for using media to manipulate currency.

Yeah I usually don't have a problem what he says on social media but that is straight up manipulation and he knows it. The FTC has warned him multiple times. Not sure if they care about crypto though...
 

NightAntilli

Posts: 671   +844
Once Tether goes down, all the other dominoes shall fall.
Tether is indeed a risk to the crypto market. Thankfully, USDC is gaining a significant amount of market share. Still nowhere near USDT though, since it is 20x the volume of USDC. It's only double the market cap though. But in any case...

1 Bitcoin will still be 1 Bitcoin. And there are only 21 million of them, forever. Even if things crash, they will rebound eventually.

As for Elon Musk... I find the whole thing... Entertaining. It's hilarious to me that he can have a conference with the likes of Cathie Wood, and it's him that gets the spotlight, despite Cathie Wood being someone that actually knows about investing.
 

wiyosaya

Posts: 6,132   +4,400
As for Elon Musk... I find the whole thing... Entertaining. It's hilarious to me that he can have a conference with the likes of Cathie Wood, and it's him that gets the spotlight, despite Cathie Wood being someone that actually knows about investing.
Musky has more money. For many people, that is all they think matters. To them, Musk's utterances are the word of God. 🤣

What is even more amazing to me, is that Bitcoin investors seem to pay attention to what Musky says. How many Musky/Tesla hold really make no difference in the value of Bitcoin. It is all in what "investors" or should I say, "those betting on Bitcoin" are willing to pay.
 

Dimitriid

Posts: 718   +1,296
I thought the whole point of bitcoin and other cryptocurrency was that it would be free from manipulation.

I am aware most people think that so likely not your fault here but think about it: How can it have less manipulation if it has less regulation, the very thing that's in place to prevent manipulation?

The more unregulated the currency, the easier it is to manipulate
 

NightAntilli

Posts: 671   +844
I thought the whole point of bitcoin and other cryptocurrency was that it would be free from manipulation.
The blockchain is. But its price in relation to the dollar can vary.

Look at it this way. A house has a specific intrinsic value. Whether the dollar crashes tomorrow or remains, the house is still a house.
Of course, it makes a difference if only one person wants the house, or if a thousand people want the house. The price in terms of dollars will increase when there is more demand. If nobody wants the house, the price needs to decrease enough for someone to be willing to buy it. But the intrinsic value of the house does not actually change at all. Unless someone destroys it of course.

The same applies to deflationary crypto like Bitcoin, except you can't really destroy it. At least, not without destroying either the internet or basic human freedoms in the process.
 

duckofdeath

Posts: 428   +578
This smug arse belongs to prison for using media to manipulate currency.
It's an unregulated scam currency designed for this. He's just rich and famous enough to take full advantage of it.
These crypto currencies will be their own downfall. (Probably) Good intentions, exploited to the max by anyone needing a criminal transaction.
 

Austinturner

Posts: 231   +260
The blockchain is. But its price in relation to the dollar can vary.

Look at it this way. A house has a specific intrinsic value. Whether the dollar crashes tomorrow or remains, the house is still a house.
Of course, it makes a difference if only one person wants the house, or if a thousand people want the house. The price in terms of dollars will increase when there is more demand. If nobody wants the house, the price needs to decrease enough for someone to be willing to buy it. But the intrinsic value of the house does not actually change at all. Unless someone destroys it of course.

The same applies to deflationary crypto like Bitcoin, except you can't really destroy it. At least, not without destroying either the internet or basic human freedoms in the process.
A Bitcoin has no intrinsic value, the same as a $100 bill has no intrinsic value. Bitcoin is nothing like a house.
 

Cycloid Torus

Posts: 4,775   +1,577
Eln mentions Bicoin in his sleep... Bicoin up 3%

Eln can't find his Bicoin wallet... Bicoin down 6%

Eln sends Christmas cards with Bicoin gift certificate... Bicoin up 21%

Eln sneezes, grabs handkerchief, Bicoin falls into storm drain ... Bicoin drops 33.7%

Either fix Eln or Bicoin (spelling intentional).
 

NightAntilli

Posts: 671   +844
A Bitcoin has no intrinsic value, the same as a $100 bill has no intrinsic value. Bitcoin is nothing like a house.
The argument was not about the house.
An additional dollar can be typed in a computer at any moment. Bitcoin costs energy to produce.

Does the internet have intrinsic value?
 

Austinturner

Posts: 231   +260
The argument was not about the house.
An additional dollar can be typed in a computer at any moment. Bitcoin costs energy to produce.

Does the internet have intrinsic value?
You said that a house has intrinsic value (true), that bitcoin’s market value can fluctuate (true) and said the same thing applies to crypto (not true). Bitcoin is a medium of exchange only and has no intrinsic value, it doesn’t matter that it cost something to produce, its value is predicated entirely on people willing to exchange it for goods and services or other mediums of exchange, the same is true of fiat currencies and the way their exchange rates fluctuate. However if no one wishes to accept a crypto currency or a fiat currency as a medium of exchange, the value of those tokens is 0. They cannot be used for any purpose, unlike a house or a gold bar or a block of land which have intrinsic value (which is usually well below market value) and can always be exchanged for other items of value through barter or a medium of exchange.

I’m not saying crypto currencies are worthless, I’m just saying they have no intrinsic value.
 

NightAntilli

Posts: 671   +844
You said that a house has intrinsic value (true), that bitcoin’s market value can fluctuate (true) and said the same thing applies to crypto (not true). Bitcoin is a medium of exchange only and has no intrinsic value, it doesn’t matter that it cost something to produce, its value is predicated entirely on people willing to exchange it for goods and services or other mediums of exchange, the same is true of fiat currencies and the way their exchange rates fluctuate. However if no one wishes to accept a crypto currency or a fiat currency as a medium of exchange, the value of those tokens is 0. They cannot be used for any purpose, unlike a house or a gold bar or a block of land which have intrinsic value (which is usually well below market value) and can always be exchanged for other items of value through barter or a medium of exchange.

I’m not saying crypto currencies are worthless, I’m just saying they have no intrinsic value.
Well... Let me just leave this here for you to ponder about.

 

Austinturner

Posts: 231   +260

NightAntilli

Posts: 671   +844
I have seen differing views on it before but that is a well researched summary. I feel like there is no consensus though and we both will find supporters for our respective views. I was not aware of how much definitions of intrinsic value vary though.
We don't have to agree on everything. But I like it when people show that they have an open mind. So, I applaud your fairness and attitude.