Hello everyone, welcome to BudgetHolics. In today’s video we’ll explore whether this is the end of Bitcoin. SPOILER ALERT: It’s not!
It all started last week with Elon Musk tweeting that, because of Bitcoin’s high energy consumption, Tesla would no longer be accepting bitcoin. However, Musk cautioned that Tesla would not be selling any of its existing BTC. People started speculating that Tesla and Elon himself had dumped all BTC, prior to the tweet.
In response, Michael Saylor tweeted that Microstrategy had purchased an additional 271 bitcoins for $15 million in cash.
On Sunday, @CryptoWhale insinuated that BTC holders would find out in TSLA’s Q2 2021 Earnings report that the company has dumped all bitcoin, and that he wouldn’t blame Elon after all the hate he’d been getting. To which Elon responded “Indeed”. This further sparked the speculation that Elon had dumped all bitcoin prior to the previous tweet, which was cleared up by Musk.
Saylor also joined this thread, arguing in favor of bitcoin’s energy consumption. His main point is that it is the most energy efficient and secure asset currently available.
Andrei Jikh pointed out that Tesla has applied to become certified by the Environmental Protection Agency (EPA). One of the benefits is a $1bn dollars credit line. The EPA has argued against bitcoin, and, according to Jikh, this could be the reason Musk is dissing bitcoin.
According to Digital Asset News, BTC was bound to drop during the weekend due to three other reasons:
- The Sunday Dump: BTC’s price tends to drop on Sundays, and later recovers during the week.
- Tax Season: It’s Tax season in the US, and people are using bitcoin to pay for their taxes. In Florida, people can also pay their taxes directly using bitcoin.
- Wales: Following Musk’s Tweet, wales, i.e. large bitcoin wallets, also dumped their bitcoin along with smaller retail investors to take advantage of a reduced price further down the road.
To me, the fundamentals have not changed. Bitcoin is still the crypto asset with the largest market cap and the highest degree of institutional adoption. Back in 2018, the price of BTC dropped by 70%, and until I see such a decline in the price of BTC, I'm not worried. I’ll take any opportunity I can to keep DCAing at a discounted price, and buy the dip whenever possible.
