@Bitcoin (Twitter)
Bitcoin is down 26% this week as Elon Musk went to war with the bitcoin crowd over his disapproval of the cryptocurrency’s energy consumption, and decided to reverse his earlier decision to allow purchases of Tesla cars in bitcoin.
Musk became an object of derision among bitcoin fans, as well as Dogecoin founder Jackson Palmer, who tweeted: “Reminder: Elon Musk is and always will be a self-absorbed grifter.”
Palmer founded Dogecoin in 2013 as more of a joke than a serious cryptocurrency, though Musk has been talking it up as a potential replacement to bitcoin for its supposed potential to transact faster and use less energy.
Musk clarified on Monday that his company Tesla had not sold any bitcoin that had been acquired earlier in the year, putting paid to speculation over the weekend that the company had dumped its recently acquired bitcoin.
“Elon’s tweets range from claims of negative externalities from energy consumption to claims that 10x faster and larger blocks on Dogecoin are a viable alternative. Unfortunately, this has led to widespread confusion in markets, although for many Bitcoin HODLers (long-term holders), this is just another day in the office,” says blockchain intelligence group Glassnode, adding that newer market entrants are panic-selling, while “long term holders appear relatively un-phased by the news”.
While the current sell-off bears some resemblance to the previous macro peak of 2017, this time some unique differences will challenge the conviction of both bulls and bears.
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