Bitcoin’s price plunges as the energy consumption discussion surfaces again!
Bitcoin is the biggest cryptocurrency in the world, but at the same time, it is also the most volatile one too. It has proved its volatility in May when it fell from its peak and reached $32000 from $60000. It has been going up and down, which has created numerous problems for the investors. You must visit app to start trading bitcoin and make big profits. On 24th May, the bitcoin price recovered a bit, but a day later, it again started falling, and the reason is mentioned below.
The downfall of bitcoin resumes after Musk’s tweet
Bitcoin has suffered one of the most vicious crashes in its history in the month of May. But after crashing continuously for few weeks, bitcoin was starting to recover a bit, and on 25th May, it slipped once again, and the reason behind that is Elon Musk once again. Elon Musk is the owner of Tesla. He has been tweeting about cryptocurrencies for the past few months. His every tweet brought some massive fluctuations in the price of top cryptocurrencies such as Bitcoin. After Musk resumed that discussion over the environmental damage caused by bitcoin mining, the world’s largest cryptocurrency price plunged by over 6.5%. However, bitcoins showed some growth on Monday as their price increased by 16%, but the next day they witnessed a downfall of 6.5%.
On the other hand, Dogecoin, which grew at a rapid pace initially, stay at a low price after Elon Musk tweeted that he has no influence over crypto. He tweeted that Dogecoin has no formal organization, no one working on it reports to me. In simple words, Elon Musk has no control over Dogecoin, which cleared the doubts of people who were thinking that Elon Musk can be the CEO of Dogecoin.
Tesla boss triggered a selloff in the crypto market
The massive fluctuations that occurred in the crypto world have been done by Elon Musk, and his tweets about different cryptocurrencies have triggered a selloff in the crypto market. First of all, he announced that Tesla would no longer be accepting bitcoin payments, and then he also commented on the energy consumption of bitcoin mining and its impact on the environment. It had a massive effect on the image and price of bitcoin, and a vast number of investors sold their investments which triggered a selloff. Adding to it, the restrictions and ban imposed by the Chinese authorities on cryptocurrency added extra pressure on the already bruised crypto market.
According to the experts, the wild fluctuations caused by Musk’s tweet has made investors lose their trust in the crypto class. If a tweet from one person can lead to a market crash, then anyone can manipulate the prices and trends easily. The crypto world is criticized for its high energy consumption for a long time. So, after the criticism from Musk, miners have pledged to make it greener and decarbonize the crypto industry entirely by the year 2030.
Musk meeting with bitcoin miners to resolve the issue
It is irrefutable that Elon Musk criticized the CO2 emissions caused by bitcoin mining, but it is also true that he is one of the biggest supporters of cryptocurrency in the world. So, despite criticizing it, he had a call with some of the top miners from North America and discussed some ways with them through which the energy consumption could be minimized, and the operations can be made more environment friendly. The group of miners agreed with Elon Musk and has decided to form a Bitcoin Mining Council, which will keep an eye on the energy consumption and will manage the energy reporting.
Changing the source of energy used by miners and lowering the energy consumption is not an easy task as it will take several years to get completed. Bitcoin mining involves a chain of computers that run 24×7, and it pollutes a tremendous amount of fossil fuels. But the strange thing is that, despite opposing the energy consumption in bitcoin mining, Elon Musk invested over $1.5 billion in bitcoin when he announced that his company Tesla would accept bitcoin payments. However, he made a U-turn on his decision and changed his mind, and the reason behind that was the harm that crypto mining causes to nature.