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Tesla TSLA chief executive Elon Musk may no longer be the bitcoin community’s favorite tech billionaire, but he can still change the price of bitcoin.
Musk, who has alienated many in the bitcoin space over the past few months with his tongue-in-cheek support for the “joke” cryptocurrency dogecoin, raised the price of bitcoin on Sunday afternoon.
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MORE FROM FORBESCrypto Price Alert: JPMorgan Issues Bitcoin Stark Warning Like Ethereum, Binance BNB, Cardano and Dogecoin SlideBy Billy Bambrough
Tesla billionaire Elon Musk crushed the bitcoin party earlier this year with a $ 1.5 billion bet on … [+] cryptocurrency but has since turned its attention to rival bitcoin’s dogecoin “joke”.
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“When there is confirmation of reasonable (around 50%) clean energy use by miners with a positive future trend, Tesla will resume allowing bitcoin transactions,” Musk wrote on Twitter, responding to an article. of Cointelegraph which reported Magda Wierzycka, Managing Director of South Africa. financial services company Sygnia, “reviews[d] Elon Musk for [an] allegedly pumping and unloading bitcoin. “
“This is incorrect. Tesla only sold about 10% of the holdings to confirm that BTC could be liquidated easily without moving the market,” Musk said. In February of this year, Tesla revealed that it had purchased $ 1.5 billion worth of bitcoin and continues to hold most of it on its balance sheet.
Estimates of the percentage of renewable energy that currently powers the bitcoin network are inconsistent. A recent report estimated that electricity produced from renewables accounted for almost 40% of the energy consumed by the bitcoin network, however, a previous study had estimated this figure at just over 70%, in large part. partly due to the abundance of hydroelectric generators in southwest China and Scandinavia. major bitcoin mining centers.
The price of bitcoin jumped about 5%, reaching $ 40,000 per bitcoin, after Musk confirmed that Tesla plans to eventually resume bitcoin support.
Bitcoin has collapsed from its peak of around $ 65,000 in April, with its selling exacerbated in May by Musk pulling the hold on Tesla customers using Bitcoin for purchases, citing energy demands from the bitcoin network that have increased in recent months.
“Cryptocurrency is a good idea on many levels and we believe it has a bright future, but it can’t come at a cost to the environment,” Musk announced in May, sending shockwaves through the markets. bitcoin and cryptocurrency.
CryptoCodex Help you understand the world of bitcoin in a nutshell
MORE FROM FORBESCrypto Price Prediction 2021: Why Ethereum Is ‘On Track’ To Surpass Bitcoin’s Market CapBy Billy Bambrough
The price of bitcoin has risen by around 5% following Elon Musk’s tweet confirming his intention to restart … [+] Tesla’s Bitcoin support if the cryptocurrency improves its use of renewable energy.
Coinbase
In late May, Musk helped create the North America Bitcoin Mining Council, bringing together some of the region’s largest bitcoin mining companies to increase the use of renewable energy by miners.
So-called bitcoin miners are rewarded with newly minted coins for securing the bitcoin network and validating transactions, requiring enormous computer processing power, considered to be greater than that of the entire country, according to some. calculations.
“[The North American bitcoin miners] committed to publish current and planned renewable use and ask minors [worldwide] to do so, “Musk said on Twitter at the time, adding that he thought the development was” potentially promising. “
In the meantime, Musk has given considerable support to dogecoin, a memes-based cryptocurrency originally created as a “joke,” calling on developers to submit upgrade ideas and agreeing that a dogecoin suggestion could. being used via the ethereum blockchain is “incredible”.
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