Elon Musk’s Bitcoin U-turn – just a PR stunt?
Tesla boss Elon Musk’s about turn regarding Bitcoin on Twitter is likely nothing more than a PR stunt.
Musk’s announcement that the electric vehicle company is halting sales of cars using Bitcoin due to the environmental impact of mining that cryptocurrency, sent prices tumbling.
We’re once again seeing the influential billionaire CEO take to Twitter, this time to unveil a major U-turn.
As I was quoted by Yahoo Finance, Business Insider and others, and also talk about in this video, looking back just a few months, Musk announced Tesla had purchased $1.5 billion worth of Bitcoin, and the cryptocurrency would be accepted as payment for cars.
This is one of the main reasons Bitcoin’s price has skyrocketed this year.
Then, suddenly, Musk is backtracking on Bitcoin due to environmental concerns. Yet why now? These environmental issues haven’t just appeared overnight, did he really not know about them before buying $1.5 billion Bitcoin?
Of course, there are serious environmental concerns surrounding Bitcoin which urgently need to be tackled. Any initiatives that bolster the further move to sustainable energy must be welcomed, and it’s something I wholeheartedly support.
That said, research shows 76% of crypto miners currently use electricity from renewable energy sources as part of their energy mix. So, why is Musk – with his vast power and resources – not able to ensure his Bitcoin is mined in this way?
Furthermore, why is he not using his immense influence to advance and incentivise renewable energy for cryptocurrencies? When Twitter CEO previously tweeted on the subject, Musk agreed with him, so why is he not doing the same now?
So, Tesla’s temporary halt on Bitcoin. Just a PR exercise? Well it’s worked if it is, it’s certainly got everybody talking.
But is there another reason behind Musk’s Bitcoin blitz?
Well, we know Musk likes to go against the crowd. Is his dwindling interest in Bitcoin coming at a time when massive amounts of institutional investment from major Wall Street banks and others is pouring in to do with it?
With Bitcoin’s fundamentals continuing to attract huge institutional and retail interest, we can expect many investors will likely use this latest Bitcoin price drop from fresh record highs as a significant buying opportunity.
Of course, despite this latest move, we know Musk clearly still believes in Bitcoin – he hasn’t sold any. Nonetheless, I hope he will do much more, making the most of his immense resources, to accelerate the transition to sustainable energy for crypto mining.