Earlier today, it was announced on Live Bitcoin News that the price of BTC had taken a drastic fall thanks, in part, to actions taken by Elon Musk, who announced that his company Tesla had decided not to accept bitcoin payments for goods and services. As it turns out, the price of BTC – along with several other leading altcoins – may have also fallen thanks to Vitalik Buterin, the co-founder of Ethereum.
Vitalik Buterin Moved a Bunch of Money
Buterin has donated more than $1 billion worth of Dogecoin to a COVID relief fund in India. This is not bad. In fact, it presents digital currency as a top charity tool and really pushes it forward in terms of legitimacy. However, Buterin is taking flack for moving several billion dollars of Ethereum, the cryptocurrency he helped to create.
This led to hardcore speculation amongst traders and investors who felt that Buterin was likely cashing out his stash. They then questioned whether ETH held a justified position as a leading digital asset.
This move was followed by Ethereum dropping below the $4,000 line, which was a new all-time high that the currency managed to attain just a few weeks ago. Unfortunately, the dismay did not end there. Dogecoin, which recently became the fourth largest cryptocurrency in the world, dropped roughly ten percent, leading the way to what has been recorded as a $300 billion loss amongst all leading digital currencies.
In addition, new details have emerged regarding why Tesla and Elon Musk are now turning their backs on crypto payments. Musk took to Twitter to explain that his main reason for saying “no” to bitcoin payments is that he is concerned about environmental hazards allegedly caused by mining. In his message, he states:
Cryptocurrency is a good idea on many levels, and we believe it has a promising future, but this cannot come at great cost to the environment.
The idea is that if Tesla accepts BTC payments, other large companies will follow suit, which will potentially cause mining to become an even larger enterprise. This could potentially lead to a larger carbon footprint and atmospheric damage that cannot be reversed.
All Depends on Elon Musk?
Alex Kuptsikevich – a senior financial analyst at FX Pro – explained his disdain with the idea that the entire crypto space could be affected by one man’s words. He stated:
Elon Musk has the ability to pump or dump bitcoin’s price almost on his own when it suits his interests. This heavy reliance on the entire market’s outlook on statements from one major investor is a huge gap for the crypto market, demonstrating its vulnerability. It should be noted that bitcoin’s fall coincided with a correction in the S&P 500, once again proving that the investor composition of both markets may be well correlated.
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