The tension between cryptocurrency and Elon Musk: ambassador or responsibility?

When Tesla CEO Elon Musk revealed his company’s Bitcoin (Bitcoin) Exposure and announcement of the launch of encrypted payment, BTC took off and hit a record high. However, shortly thereafter, Musk began to express concerns about the environmental impact of BTC on Twitter, as well as Tesla’s change of its crypto payment policy, which caused the value of Bitcoin to shrink by half and the entire crypto market to capitulate.In short, Musk tweeted Cold support for encryption, The price rose; Musk released an emoji package Implying that he “breaked up” with Bitcoin, And the price dropped.

For an industry that values ​​disintermediation and the widespread distribution of economic power, the cryptocurrency field has given a person too much influence on its destiny. It is hoped that the cryptocurrency market will soon get rid of its dependence on Musk. However, at this point, the technology tycoon’s Twitter conversation is one of the most influential exogenous factors affecting the price of digital assets.

In the final analysis, who is Mr. Musk in the cryptocurrency industry-a weird friend, a rival, or just a billionaire who plays freely in the trillion-dollar market?

Although it is impossible to know the thoughts of this controversial billionaire, in the long run, there is still room for evaluation of what his existence means to the industry, as well as educated guesses about his position and motives.

Crypto influencer #1

As of today, Musk’s influence on the value of encrypted assets shows no signs of abating.Recently, Musk Replied to an article by Cointelegraph on Twitter There, he clarified the conditions that might lead Tesla to resume accepting Bitcoin transactions. Guess what happened next? That’s right: Bitcoin recovered thousands of dollars overnight.

This is exactly related to BTC and can therefore be considered “serious”. A separate chapter of the Musk-crypto saga is that he-presumably half-jokingly-participates in various altcoins that can increase their market value within hours in response to his tweets. From systematically supporting memecoin-in-chief Dogecoin (dog) To look for more obscure but sad items, such as Porn industry affiliate coin CumRocket (CUMMIES), Musk has participated in many price changes.

The negative impact of Musk’s antics on the crypto industry is well documented.First of all, some retail investors took inspiration from Tesla’s CEO, and the transaction costs were beyond their means. affordable lose. There are certainly more people who have suffered losses without directly paying attention to Musk, and have become victims of the entire market downturn triggered by his derailment.

On the scale of the industry, the recent volatility storm has hindered further building the reputation of digital assets as a mature and safe asset class. As a newcomer who is looking elsewhere to deposit funds, how likely are you to be excited about an investment that drops 40% within a day after a random tweet? A related concern is that the malleability of this potentially malignant market manipulation may cause unnecessary regulatory concerns in the cryptocurrency space.

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As Mati Greenspan, the founder and CEO of Quantum Economics, a financial consulting firm, told Cointelegraph, some people still believe that Musk’s continued volatility is good. “Musk’s involvement in the crypto space is a positive Factors. For a long time, volatility has been hailed as a driving factor driving transaction volume and adoption rates.”

However, others agree with the view that no matter what kind of benign results of Musk’s encryption-related propaganda, the negative impact accounts for a large proportion. Dean Steinbeck, co-founder and COO of Horizen Labs, a blockchain solution provider, told Cointelegraph:

“Musk’s actions have greatly damaged cryptocurrencies. First, he continued the red herring argument that Bitcoin is harmful to the environment. This argument is false and is continued by projects with ulterior motives. Second, Musk’s attention From his amateur tweets, these tweets support nonsense memecoins that have no substantial value.”

Steinbeck further believes that Musk is “just an anti-social billionaire. He knows almost nothing about cryptocurrencies, but believes he is an expert.”

what for?

Many people in the cryptocurrency space want to know what Musk’s motivation is for posting tweets that often contradict each other but reliably affect the market. Will it be as low and crude as manipulating the price of a coin to gain revenue? Or maybe, the tweet is a by-product of the well-intentioned learning process that has gone through all the bumps and turns? Or is it mostly just for fun?

Interesting assumptions seem to be particularly influential, some cryptocurrency markets Participants are not interested.

However, other cryptocurrency influencers are willing to let Tesla’s CEO benefit from suspicion. Brock Pierce, a cryptocurrency investor and chairman of the Bitcoin Foundation, does not believe that Musk’s actions affecting digital assets are malicious. He told Cointelegraph:

“It seems to be [Musk] When he entered the “rabbit hole” of cryptocurrency, he was very sensitive to different opinions and learning, but I think this is not his opportunism. I think he is trying to understand them more and more deeply, just like he has done in many industries. Education is not a straight line, he is going through his own process and doing it in a very public way because he has a large number of followers. “

Pierce added that because the cryptocurrency community tends to be tolerant, it is still possible for Musk to become an important advocate in the field, provided that his intentions are proven correct in the medium to long term.

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For the latter prospect, opinions are very divided. When asked if Musk has completely destroyed his reputation in the crypto community, Greenspan replied:

“Emphasis, yes. People in this field are very bored and tired of his intervention in the market’s volatility.”

Greenspan summarized the prevailing sentiment, saying that although many people are happy to follow the laughter, in fact most people are tired of it.

If the latter is the case with a large number of crypto market participants, this may be good news. Breaking the “Musk mantra” and liberating the entire asset class from the whimsical influence of a powerful person requires considerable “Musk fatigue.”