Bitcoin crashed after Tesla abandoned the cryptocurrency as a payment method. The crypto community criticized Elon Musk while DOGE staved off competition from a rival.
After Tesla canceled payments over carbon concerns, Bitcoin lost 6% of its value in an hour.
However, bitcoin was already losing dominance in the crypto rankings while altcoins were gaining strength. As Elon Musk made a shock announcement this week, the situation for bitcoin went from bad to worse.
The billionaire CEO declared on Twitter that they stopped purchases of Tesla cars using BTC because of concerns about the cryptocurrency’s effects on the environment.
Although Musk said confirmed that the company is searching for other cryptocurrencies that are less reliant on energy. He added that Tesla is not planning to sell any more of its Bitcoins.
This statement surprised many trades, and as a result, BTC went into freefall. It showed as low as $46,980.03 and struggled to remain over $50,000.
That announcement confused some investors wondering what has changed after Tesla invested almost 2 million in Bitcoin several months ago. The energy use of blockchain is nothing new.
Details on The Use of Energy
Some people accused the CEO of engaging in a scam by manipulating the market. Some others insisted that miners use renewable energy, but data suggests a slight embellishment. While 77% of miners use renewable energy sometimes, the University of Cambridge estimated that just 38% of total power consumed by cryptocurrencies is eco-friendly.
The founder of Barstool Sports, David Portnoy, accused Musk of playing with people’s fortunes and futures.
Other people pointed out that proof of work is essential for Bitcoin. They attempted to reassure some investors that the cryptocurrency can prove resilient to criticism.
The world’s second-biggest cryptocurrency increased and surged to $4,362.36. It propelled its market cap to more than $500 billion for the first time.
Ether’s parabolic surge gave it a more extensive valuation than Visa and JPMorgan’s likes.
From last Saturday to Sunday, Dogecoin lost 40% of its value 24 hours, hitting lows of $0.44. However, some analysts expected that the altcoin might rally after the broadcast, but the opposite happened.
Some investors made comments on these events. The CEO of Unstoppable Domains, Matthew Gould, said that replacing Gold as a store of value might help the environment and shrinking big banks and coin usage would benefit society and the environment.