Information given by Elon Musk on Twitter helped Bitcoin gain strength and hit the $ 40,000 mark again.
The CEO of Tesla, Elon Musk said on Twitter on Monday (May 24) that he had a “promising” meeting with U.S. Bitcoin miners to discuss the use of clean energy in the BTC mining process.
Bitcoin and Elon Musk
“Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising,” said Elon Musk on his tweet.
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
The information helped the cryptocurrency to increase its price during the afternoon,
after going under $ 32k on Sunday (May 23). Now, the cryptocurrency is approaching again the $ 40,000 mark. Earlier this year, Bitcoin was already recording strong gains with the price reaching over $ 60,000.
Bitcoin’s recent downturn
Musk has been mentioned as one of the reasons for Bitcoin’s recent downturn. For those who don’t remember, Elon Musk helped the crypto market go mainstream when he announced in February 2021 that his company bought $ 1.5 billion in Bitcoin and that Tesla would accept BTC as payment for vehicles.
However, on May 12, the executive announced that Tesla would no longer accept Bitcoin because of environmental concerns.
“We are concerned about rapidly increasing use of fossil fuels Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel“, said Musk, on his Twitter profile
“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”.
Musk further stated that Tesla will not sell Bitcoin: ”We intend to use it for transactions as soon as mining transitions to more sustainable energy”.
This announcement ended up shaking not only the cryptocurrency market, but also Tesla stocks, which plummeted in the Wall Street after market.
Musk also completed, on May 13th, by his profile on Twitter: “Energy usage trend over past few months is insane”
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
Now, Tesla’s CEO seems to be trying to help improve the sustainability of the BTC mining process – responsible for creating new bitcoins -, leading miners to seek the use of renewable energy.
Energy usage trend over past few months is insane https://t.co/E6o9s87trw pic.twitter.com/bmv9wotwKe
— Elon Musk (@elonmusk) May 13, 2021
Shortly after Musk’s tweet, on May 24, Microstrategy CEO Michael Saylor said that he organized a meeting between Tesla’s CEO and some Bitcoin miners that led to the formation of the “Bitcoin Mining Council” that will promote sustainability of the mining process.
Bitcoin miners are key to BTC ecosystem
Bitcoin is based on a cryptography system, which guarantees the security of the transactions carried out in the blockchain, in an anonymous and decentralized manner. The Bitcoin miners are essencial part of this ecosystem, since they are the ones who “validate” the transaction on the blockchain.
In the Bitcoin mining process, computers connected to the network work to solve problems. When these are solved (and thus validate the BTC transaction), the miners receive a fraction of BTC.
About Bitcoin
Bitcoin is an innovative digital currency, being the first cryptocurrency of its kind, created in 2009. Unlike other currencies, Bitcoin only exists in the virtual environment and can only be used virtually or in physical stores that accept cryptocurrency as payment.
When Bitcoin was unveiled, the asset was discredited by many – as it was not the first attempt to design a digital currency. However, one of the critical aspects of BTC’s success is that it is decentralized, without any regulation from government, companies or banks. Bitcoin leaves users and investors free to do as they choose, without the need for intermediaries.
Bitcoin price today
It is important to remember that Bitcoin behaves like any other currency: its value is volatile and changes daily according to market movements and trends, as well as general perception of economy, supply and demand. The crypto market, given its nature, is much more volatile than traditional markets like stocks. Despite great opportunities, crypto trading is a risky activity and we recommend caution when investing in cryptocurrencies.
