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$365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

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Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#201

Post by matchagaucho »

steveBK123 wrote: post #198

I wonder how much BTC is actually mined with fossil fuel. Even at the record prices, with efficient ASIC/GPU miners, you need some extremely cheap electricity to make it work. I suppose owning the power plant might work, as in the example ars article linked in this thread of a company spinning a bankrupt fossil fuel plant up for crypto. I think you can attribute a lot of other factors to crypto volatility than just M…

75% of BTC mined in China. 53% of China's power is coal.

Some fossil-fuel plants in the US are reopening specifically to serve BTC data centers.

https://arstechnica.com/tech-policy/2021/05/private-equity-f...

Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#202

Post by totalZero »

BitwiseFool wrote: post #5
encryptluks2 wrote: post #2

SEC wouldn't allow this with the stock market, how is this any different? His actions were intentional by the way it is obvious he is manipulating the market intentionally.

I don't want the SEC involved in crypto, at all.

Why not? There have obviously been several scams in crypto, and as a market it is extremely disorderly.

Buying and selling gold is highly regulated. What makes you think crypto shouldn't be similarly regulated, even if it's only to ensure that taxes get paid and exploitative schemes get busted?

Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#203

Post by Consultant32452 »

I find it hard to believe that Tesla invested $1+ Billion in Bitcoin without doing the most basic due diligence. This isn't like a WSB trader burning their stimulus check. A team of lawyers, accountants, etc. had to be involved in this. Concern for energy consumption is one of the most obvious things you'd run across when researching Bitcoin. This definitely feels like something unspoken happened behind the scenes for the rapid 180. I'm not suggesting any crazy conspiracy theory, like I don't think government spooks are involved or anything like that. It just seems like normal corporate speak excuse for this change where they aren't going to really discuss what happened.

Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#204

Post by snotrockets »

svachalek wrote: post #166
snotrockets wrote: post #147

Earlier quoted context omitted.

Doesn't matter: considering that all cryptocurrencies have significant environmental impact, using them would force ESG-screening funds to drop the company.

Bitcoin is deliberately inefficient to a horrifying degree but it is not "all cryptocurrencies". Most modern designs are thousands or millions of times more efficient.

And even at that cost, they are are still an environmental disaster.

Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#205

Post by admissionsguy »

sakopov wrote: post #31

Very perplexing behavior from Musk, I must say. Bitcoin's energy consumption has been front-and-center for a few years now and even more so when the bull market got hot. How does Musk decide to throw $1.5 billion worth of Tesla's cash into BTC without acknowledging this? I was expecting a little bit more due-diligence from him, but he's been absolutely consumed by crypto markets in general.

I think Musk is not taking cryptocurrencies or life in general as seriously as most commenters here. Which is quite alright and refreshing, to be honest.

Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#206

Post by Ekaros »

bknybkny wrote: post #37

Elon just learned that BTC is bad for the environment? Should have googled it before he bought $1.5 billion of it! Honest mistake I suppose.

Looking at hyper loop his technical chops might not be what some people make them to be... So it might have been...

Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#207

Post by Sparkle-san »

delaaxe wrote: post #189
orblivion wrote: post #156

Earlier quoted context omitted.

Okay, here's my Big Brain, 4D Chess take: Elon Musk wanted to adopt Bitcoin, but he knew there was this big problem with energy consumption. It's bad for his brand, and perhaps goes against his own ethics. Could he say "hey, get the energy consumption down and I'll go all-in with Tesla"? People wouldn't think much of it. Better option: Buy a huge stake in Bitcoin, announce that he'll be accepting bitcoin at Tesla, ge…

It's not that complicated: https://arstechnica.com/tech-policy/2021/05/private-equity-f...

I feel like the acceptable level of due diligence that should have necessary for Tesla to move in the Bitcoin direction should have easily accounted for a possibility like this.

Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#208

Post by totalZero »

exporectomy wrote: post #65
sp332 wrote: post #12

Earlier quoted context omitted.

Laws still apply to individual people even if those people denominate their illegal actions in BTC instead of USD. They're not going after exchanges or miners here.

Market manipulation isn't illegal because it hurts investors, it's illegal because it hurts the market which is important for the economy. The crypto market isn't, so it doesn't need that kind of legal protection.

Both points you make are questionable.

Hurting the market is no different from hurting investors because bad practices that hurt one investor have a chilling effect on other investors' activity. Moreover, regulators don't have to clear a "does this hurt the whole market" test before taking action. For example, I know a guy who was running a business at an investment bank and got in trouble with FINRA for trading through NBBO on a very small order (retail sized).

The crypto market has grown to a size and role that affects the greater economy. We see that in so many ways, not only due to the holdings but also because different economic participants are catering to miners and setting up payment options for holders of crypto. It's no longer a cute side project.

Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#209

Post by kvz »

acchow wrote: post #154
hd4 wrote: post #6

The media tends to be extremely trigger-happy to blame a correction or dip in crypto on a single event like Tesla not accepting BTC while it's just as likely that this is an effect of the wider market correction that's taking place after the inflation/CPI news this week.

Tesla's announcement was about the environmental impact of bitcoin. Proof of work coins are down precipitously whereas the main proof of stake coin (Cardano) is up significantly. The timing with the announcement is more than just "macroeconomic effects".

I wouldn’t be surprised if they bought Cardano’s ADA ahead of this. It’s the biggest crypto that already implemented proof of stake, so the most likely place anyone seeking refuge may move value to, increasing its price dramatically. This could make it a dump & pump, if that makes sense. Dump BTC with a claim that pumps ADA.

Re: $365B wiped off cryptocurrency market after Tesla stops accepting Bitcoin

#210

Post by Glavnokoman »

dubcanada wrote: post #67
sakopov wrote: post #31

Very perplexing behavior from Musk, I must say. Bitcoin's energy consumption has been front-and-center for a few years now and even more so when the bull market got hot. How does Musk decide to throw $1.5 billion worth of Tesla's cash into BTC without acknowledging this? I was expecting a little bit more due-diligence from him, but he's been absolutely consumed by crypto markets in general.

He's not an idiot, the people who praise him as a god and follow his every word and beckon are. Musk is extremely smart, he knows Bitcoin energy consumption is high and unsustainable. And he knows how to manipulate a bunch of people who have no idea what they are investing in/how to invest. What he did (and this is pure speculation) is a basic pump and dump (well sort of dump, I guess they still have a bunch?). Bough…

looks like like idiots do not like being called as such :)
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