Tesla CEO and founder Elon Musk a.k.a Technoking is the richest man in the world. When he entered the crypto world, he immediately gained popularity given his status in the real world. He has been actively promoting DOGE (dogecoin), his favorite crypto. In February, Tesla added $1.5B worth of BTC (bitcoin) to its balance sheet. According to reports, Microstrategy CEO Michael Saylor has convinced Musk to include BTC (bitcoin) in Tesla’s portfolio.
This action was highly celebrated in the crypto market and even resulted in a spike in BTC (bitcoin) price. But it was the exact opposite in the traditional market. Shortly after Musk’s announcement on the acquisition, Tesla shares plummeted by 28% from $863.42 to $621.44. Gary Black, one of Tesla’s biggest investors reportedly exited his Tesla position when the announcement was made. In a previous tweet, Black has strongly advised Tesla to sell its bitcoins and buy back company shares. Other Twitter users also agreed with Black with one user even stating that its bitcoin acquisition has created an unstable image of the company. But despite this, Tesla maintained its position on the issue.
Elon Musk became a very prominent figure in the entire crypto industry. With more than 56 million followers on Twitter, undeniably Musk is a force to reckon with. With a single tweet, he made prices of cryptocurrencies like BTC (bitcoin) and DOGE (dogecoin) surge. At one point, his tweet sent the price of DOGE (dogecoin) increasing in trading volume by 50% overnight. A simple act like changing his bio influenced the price of BTC (bitcoin) and made the cryptocurrency spike in price and increased by 13.9%. With his enormous influence, he single-handedly made the prices of these two crypto-assets spikes. It is no surprise that other crypto projects were itching to get him involved to increase their value. He became the man that wields the sword in crypto.
Musk enjoyed a good relationship with other bitcoin proponents most especially with Saylor who has been instrumental in his company’s bitcoin purchase. But his heart always belongs to DOGE (dogecoin) and joined hands with Dogecoin armies in making the price of the altcoin continuously surge.
Musk Change of Tune Towards Bitcoin
On April 25, in a tweet, Musk announced his live appearance in the TV show “Saturday Night Live”. It became the most anticipated event for the Dogecoin armies hoping to make the price of the altcoin soar even more. On May 7, DOGE (dogecoin) recorded its newest all-time high and has increased by 53.77% with its price at $0.7398. Hopes were high that on the actual day of Musk’s appearance on the show, the most sought price of the digital asset at $1 might actually happen.
But things didn’t go as expected. Barry Silbert, the Founder, and CEO of Digital Currency Group announced on Twitter in advance that he is going short with DOGE (dogecoin).
What’s noticeable in this tweet, he used the word “we” and even encouraged dogecoin holders to convert their portfolio to bitcoin.
On May 8, the price of DOGE (dogecoin) plummeted an hour before the TV show even started. Despite efforts from the Dogecoin camp, the price of the altcoin continued to drop. It became evident that it is now a battle between the laser-eyed bitcoin proponents and the dog-themed token army. The most dominant cryptocurrency won over its meme. Musk and the Dogecoin army lost, or so we thought.
On May 13, five days after his TV appearance, Musk announced on Twitter that Tesla will stop accepting BTC (bitcoin) as payment. He cited the carbon footprint due to bitcoin mining using dirty energy from coals as the reason behind this. Saylor came to bitcoin’s defense and even stated a report by cbeci.org on the improvement of the cryptocurrency’s energy consumption. But Musk remained unfazed and his action caused the price of BTC (bitcoin) to slump. The price of the virtual asset dropped to as low as $47,029 and started the series of dips that resulted in the recent market crashes.
According to speculations, the removal of BTC (bitcoin) as payment for Tesla cars was a retaliatory action aimed at bitcoin proponents who have ganged up on Musk’s most favorite crypto. Efforts to raise the price of DOGE (dogecoin) to regain its price became futile after the series of market crashes. With the price of BTC (bitcoin) down, prices of major cryptocurrencies like ETH (ethereum), BNB (Binance coin), XRP (Ripple), and even the dog-meme coin fell along. Even Musk’s tweets did not save his favorite crypto from the dip. Will Musk totally turn his back on bitcoin? Despite his rift with some bitcoiners, Musk stated that Tesla did not sell its BTC (bitcoin) holdings.
Musk Supports Crypto, Forms Bitcoin Mining Council with Saylor
On May 22, in a tweet, Musk expressed his support for crypto against fiat.
The true battle is between fiat & crypto. On balance, I support the latter.
— Elon Musk (@elonmusk) May 22, 2021
His tweet made the price of BTC (bitcoin) increase at $38,841 making it evident that Musk’s influence in the crypto world still remains.
On May 25, Saylor and Musk reportedly had a meeting with major bitcoin miners in North America and created the Bitcoin Mining Council. After their exchange of tweets, the duo has obviously reconciled and now aims to provide a solution to the bitcoin mining issue on energy consumption. Saylor further added:
“We wanted to understand how we could be the good guys in the entire ESG debate”, because “we [bitcoiners] are the good people” who are “actually driving sustainability.”
After Musk made the announcement on his Twitter about the meeting, the price of BTC (bitcoin) increased by 4% with its price at $39,842.
Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising.
— Elon Musk (@elonmusk) May 24, 2021
Some bitcoiners remain skeptical about Musk’s intentions but it is undeniable that Musk has not lost his touch in the crypto world. He remains to be one of the most influential personalities in the industry. But just like the recent bitcoin dip, Musk’s status has also changed as he is no longer the richest man after Jeff Bezos, Amazon founder, reclaimed the position. Well, who cares about being second if you have billions of dollars in your account. Does it even matter? Let’s see if Musk will be able to snatch that position again from Bezos.