The use of digital currencies like bitcoin is getting raised from day today. It is because of using cryptocurrencies, which is much better as compared to fiat currency. The recommendations and support by the leading business tycoons and celebrities even boost the demand for bitcoins. Everyone was impressed by Elon Musk’s tweet on bitcoins which was uploaded by him a couple of weeks ago. A considerable number of people from the entire world invested in this digital currency at that time. The currency broke all of its records at that time and crossed the mark of $60,000, which gave assurity to people that it will reach the point of $1,00,000 in upcoming months.
It is clear that the value of digital currencies is badly affected by the negative tweets of these celebrities and entrepreneurs. A recent tweet n which Musk announced about prohibiting the use of bitcoin for accepting payment by his automobile brand. It leads to a 17% immediate fall in the value of bitcoins. But day today, the price of bitcoin is trying to plunge has reached $50,000.
What about the tweet that leads to such fluctuations?
Elon Musk, who is CEO of Tesla, tweeted regarding concern about nature which is getting poorly affected by the excessive use of fossil fuels and other elements for the purpose of bitcoin mining. Even the consumption level for each bitcoin transaction is much higher and seriously has the worst emission of fossil fuels like coal. He has clearly mentioned that now individuals will be no longer able to make payments using bitcoins for buying the Tesla cars. It happened a few weeks ago when everyone was surprised by his announcement regarding the use of bitcoins for making payments for purchasing a vehicle.
After the sudden fall of 17%, it has been reported that Bitcoin has recovered a lot by reaching $50,000 in the trading market. Bitcoin is a kind of cryptocurrency which is the only reason that and severe fluctuation in its value directly impacts the value of other cryptocurrencies. Every investor around the world was shocked when the value of the bitcoins dropped to $45,700 within 2 hours of the tweet. It is confirmed that this was a massive fall in the value of bitcoins after a long time which created a disturbance in the entire crypto market.
Was there any effect on other cryptocurrencies?
- As the tweet affected the most prominent digital currency in the world, there is no possibility that other currencies will remain unaffected. Ethereum is the second largest cryptocurrency, also faced a downfall in its value and reached the lowest point at $3550. These kinds of fluctuations are not observed on a regular basis, but when these occur, many investors think of stepping out while savvy investor considers it as an opportunity to invest in the bitcoin at thecryptopunks.com
- The tweet has been done by the same person, who is the owner of a Tesla and announced the investment of 1.5 billion in bitcoins. Even he mentioned that the leading cause of investing in this digital currency is to promote the use of bitcoins among the people. And surprisingly, it showed a positive response because a vast number of people invested in the bitcoins, which was a good thing for the bitcoins.
- The reports also revealed that Tesla has mentioned in the tweet that they would disinvest any of the amounts from the bitcoins and even will not start accepting the payments until the proper measures will be taken to deal with controlling emissions occurred by the mining. The mining of bitcoins is conducted for a long time, so there is nothing surprising about this issue. People have been using bitcoins for a very long time period, and the miners continuously utilize the energy for a long time.
- The key reason for the sudden plunge in bitcoin’s value is the fear that has forced people to sell their bitcoins. Jeffrey Wang has mentioned the statement, and he has also revealed that selling is not a solution to everything that occurs in the market. People should not take it seriously, as fluctuations are common in the world of digital currencies like bitcoins because of their volatile nature.
Within a short time, everything will become normal, and the value of bitcoins will again rise to its highest point in the upcoming time.