Elon Musk appears to have been the catalyst again for Bitcoin’s price drop of more than 10% over the weekend after Tesla CEO appeared to suggest the company was considering removing BTC from its balance sheet this quarter.
On May 16, Musk responded to a tweet predicting that Tesla could get rid of its BTC holdings this quarter. Much to the chagrin of the Bitcoin community, Musk simply replied, “Indeed”.
– Elon Musk (@elonmusk) May 16, 2021
With Musk’s popularity already waning within the crypto community after criticizing Bitcoin’s energy efficiency amid Tesla’s suspension of support for vehicle purchases using BTC, his one-word comment drew further condemnation from from many cryptocurrency personalities.
Peter McCormack (who has since changed his pseudonym to “McObnoxious”), the host of What Bitcoin Has Done podcast, said Musk’s recent criticism of BTC is “misinformed,” adding that his support for Dogecoin could make him a “perfect troll”.
1 / Dear @Elon Musk. The perfect troll is one where people don’t know if he’s a troll or not. Your recent misinformed review of #bicoin + Doge’s Support may be the perfect troll … or you could really believe him (God I hope not).
– Peter McObnoxious (@PeterMcCormack) May 16, 2021
McCormack’s comments seem to have pissed off Musk, with Tesla CEO declaring: “Unpleasant discussions like this make me want to get really into Doge.”
Yearn Finance developer ‘banteg’ also jumped in to imply that Musk’s apparent support for Dogecoin on Bitcoin included an elaborate pump and dump system, declaring: “Guess you really need every retailer in the world to offload 28.34% of the Dogecoin supply.”
At the time of writing, DOGE prices have fallen 32% from their high of $ 0.73 on May 8, with losses accelerating after Musk’s appearance on the Saturday Night Live the same day.
Musk also claimed he had a better understanding of money than crypto analysts due to his previous leadership roles at the forerunner of PayPal, saying:
“Hey cryptocurrency experts, have you ever heard of PayPal? It’s possible … maybe … that I know [more] that you realize how money works. “
Microstrategy CEO and prominent Bitcoin promoter Michael Saylor highlighted the differences between PayPal and Bitcoin, declaring: “The world needs a decentralized, secure and deflationary store of value like #Bitcoin. much more than it needs the more centralized, less secure and inflationary medium of exchange that you describe above. “
PayPal chief engineer Daniel Brain also stepped in to highlight the extensive utility that Bitcoin offers through PayPal.
Even at PayPal, we understand the difference between a settlement layer and a transactional layer. 🙂
– Daniel Brain (@bluepnume) May 16, 2021
The comments suggest that Saylor and Musk’s relationship could cool down.
In August 2020, Microstrategy, Saylor’s main business intelligence company, became the first major consumer company to add Bitcoin to its balance sheet by purchasing 21,000 BTC for a total price of $ 250 million.
In December 2020, Musk was spotted asking Saylor how easily a large corporation could buy hundreds of millions / billions of Bitcoin. The friendly advice given precipitated the Tesla purchase the following month.
In February, news broke that Tesla had invested $ 1.5 billion in Bitcoin, pushing prices up to new all-time highs above $ 43,000 at the time.
In response to Saylor’s defense against Bitcoin today, Musk tweeted: “He should wear some outfit for Halloween, but with ‘Bitcoin’ tattooed high on his thighs.”
BTC is down 10% in the past 24 hours, after trading hands for the last time for $ 43,400.