Bitcoin plunges, crypto world erupts as Elon Musk questions energy usage
May 12, 2021 8:39 PM ETBitcoin USD (BTC-USD), TSLA, MSTR, SQMSTR, TSLA, SQ, BTC-USDBy: Stephen Alpher, SA News Editor626 Comments
- "Elon Musk reveals himself a scammer," is the title of a hotly-attended (roughly about 2K folks at pixel time) Clubhouse discussion taking place right now. Needless to say, the mood is salty.
- Earlier this evening, the Tesla chief tweeted that his company would no longer accept bitcoin (BTC-USD) as payment, calling bitcoin mining an enemy of the environment. Importantly, Musk said Tesla (NASDAQ:TSLA) wouldn't be selling any of its bitcoin stash.
- Microstrategy (NASDAQ:MSTR) CEO Michael Saylor weighs in with a response to Musk's tweet: "Ironic because no incremental energy is used in a #bitcoin transaction. The energy is used to secure the crypto-asset network, and the net impact on fossil fuel consumption over time will be negative, all things considered." Saylor's Microstrategy is the holder of more than 90K bitcoins.
- Curious to more folks than Saylor, Musk just three weeks ago was in agreement with Square's (NYSE:SQ) Jack Dorsey who said Bitcoin would a "key driver of renewable energy's future."
- Bitcoin Magazine: "[We've] suspended purchasing any Teslas. We are concerned about the rapid increase in bad arguments, especially energy FUD, from the company's CEO."
- Well-followed Bitcoin bull Udi Wertheimer: "I was extremely bullish just hours ago but things changed ... I'm short-term bearish, not just on bitcoin. Hope I'm wrong."
- Dave Portnoy: "Unlike @elonmusk I am not flip flopping every other second about #bitcoin. You will have to rip my bitcoin from my cold dead hands."
- Cameron Winklevoss: "When Elon realizes that bitcoin mining is actually pushing the renewable energy industry forward, he will refresh position and #bitcoin will moon." His brother Tyler: "Bitcoin mining is a massive subsidy for renewable energy."
- Trading at about $58K earlier today, bitcoin is now down to about $47K, or roughly 30% below its all-time high just shy of $65K.