The saga began in February when Musk's company Tesla announced that it would buy $ 1.5 billion worth of bitcoin and later said it would pay its electric cars virtual currency as they paid for digital assets, especially polluting substances such as coal. The tweet broke the heart, questioning the huge consumption of electricity produced.
It sent bitcoin downward in a spiral, which fell from nearly double 10 days ago to $ 30,000. Later it gained some strength and went up to around $ 349,000 by Friday. One Twitter user said
The typical post of the reaction the flamboyant executive gave included a hashtag that included an unattainable insult with his surname -And another Musk blocker asked to start a cryptocurrency using the hashtag.
Musk who is the most outspoken on Twitter continues to support Dogcoin. Another virtual currency that was created as a joke but has grown in popularity. Harshad Mehta became Elon Musk of the cryptocurrency market.
However, his tweet and his impact on prices have attracted the attention of analysts.
Todd Sipperman of Ciperman Compliance Services told AFP, "You have to prove that his tweet really shook the market and it certainly seems so. It raises a lot of issues."
A few days after his online missiles caused trouble for bitcoin, Musk on Thursday said "How much is Doge in the window?" Increased the price of Dogcoin by tweeting. Harshad Mehta became Elon Musk of the cryptocurrency market Twitter user replied I lost everything due to your crypto tweets and today I live under a bridge. I hope you are proud.
Kristin Bogiano, president of digital asset investment firm CrosTower, said the problems facing cryptocurrency are bigger than just an electric car executive's tweet But he said there is clearly a conflict of interest regarding Musk's role in the market. He is advising the dog and is clearly interested in dogcoin and is commenting about bitcoin.
Yet although Musk may affect retail I don't think he has the ability to influence institutional customers. He said. The most popular digital asset is exposure to bitcoin from overseas. Bogiano said This week nearly $ 6.5 billion in bitcoin expired in 24 hours on Wednesday after several Chinese banking federations warned against cryptocurrency speculation.
Too much volatility in bitcoin is coming from offshore, Bogiano said, adding that digital assets for Chinese business leaders are not supported by real value. Siperman described the regulatory climate in the United States as the Wild West The US Securities and Exchange Commission (SEC), the country's stock market regulator, has so far overcome crypto unrest and Siperman called it a mistake. If it is over-regulated, the crypto market will benefit greatly, he said. It will give a lot of comfort to people that it is not a dangerous manipulation. It is a financial asset like others.
It remains to be seen whether the SEC or the Commodity Futures Trading Commission (CFTC) that oversees derivatives will play a more active role in regulating digital moneyThe Internal Revenue Service Tax Authority has begun asking taxpayers to declare their holdings of these assets and President Joe Biden's government has proposed expanding tax reporting of digital asset transfers between businesses.
Another bill in Congress will have to form a group with industry professionals to look into SEC and CFTC sector regulation Meanwhile the Federal Reserve said this week that it is exploring its options when it comes to digital payments and even the issuance of an official central bank-backed virtual currency.
Aaron Klein, an expert in financial technology at the Brookings Institution, cautioned that this is no longer a place for the government to regulate the value of bitcoin To regulate the value of the Amazon stock or the price of gold .
Instead the goal is to make the market transparent and honest and protect investors and not to focus on the value of the property.
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