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Did Elon Just Stop the Bull Market?
One single tweet can go a long way
Hey DEFI TIMES community,
The bull market reached another peak while memecoins went through the roof! People were losing their minds about Shiba Inu, and all kinds of other animal tokens - wtf?!
And just as gas prices touched unbearable heights, Elon stopped the bullish sentiment with one single tweet:
Tesla has apparently stopped accepting Bitcoin as payments. The reason: fossil fuels as an energy source for Bitcoin mining. Of course, Elon Musk cares about the environment - one of the major reasons why he started Tesla!
The market reacted quite harshly to this: the correction that followed after Elon’s tweet was one of the biggest in months.
There are two learnings I took away from this:
As Bitcoin reaches mainstream, it will suffer more and more from its energy problem. The mainstream trend is clear: We will move in a green direction. People will criticize Bitcoin for consuming too many resources. But are these claims really justified?
Environmentally friendly coins will benefit from this trend. Ethereum, which will switch to PoS fairly soon, could take advantage of this movement. The magnitude certainly depends on how long this trend will last; however, I strongly believe that it will not end anytime soon, which could become a major problem for Bitcoin and other PoW coins.
Could this be the beginning of the end of PoW?
Well, probably not!
However, one thing is for sure: Elon killed the short-term bullish momentum with one single tweet!
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DISCLAIMER: All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article's content solely reflects the opinion of the writer, who is not a financial advisor.
Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value. Holding cryptocurrencies is risky.