Time to Buy Bitcoin？
There is blood running on the street of crypto at the moment. Lots of crypto traders are in a panic mood as their portfolio is heavily affected. But there is always opportunity in a crashing market as most people are fearful. This could be the best time to buy.
According to Warren Buffet, “be fearful when others are greedy and be greedy when others are fearful”. There is fear in the world of crypto at the moment, which is another wonderful opportunity for the smart money to get involved in cryptocurrencies.
Fundamentally, Tesla CEO Elon Musk made the world realize that the Bitcoin mining process is unsustainable when he removed Bitcoin as a means of payment on the Tesla platform. The market didnt receive the news on a good note as the price of cryptos dipped.
A lot of people criticized his decision but he made it clear that the Bitcoin mining process is against what he and his company stand for. Tesla is an electric vehicle company that uses renewable energy to power their vehicle while Bitcoin is mined through a non renewable energy. That sounds contradictory.
To sustain the mining process of Bitcoin, something has to be done. The mining process has to be done through a sustainable process and this has made Bitcoin miners around the world to look into the mining process.
Michael Saylor, the CEO of MicroStrategy recently invited Elon Musk to a meeting of Bitcoin Miners. The Bitcoin Mining Council, a voluntary, self-regulating body, emerged from this meeting with a mandate to exercise more renewable energy options and boost the transparency of crypto mining.
This is good news for all cryptocurrencies, most especially Bitcoin. Despite all the criticism about Bitcoin mining, it's estimated that a strong majority of miners already use alternative energy sources.
Separately, Sygnia CEO, Magda Wierzycka recently accused Elon Musk on Twitter where he called on the United States Securities and Exchange Commission to investigate the billionaire for allegedly manipulating Bitcoins price. According to Wierzycka, Musk knowingly pumped the price of Bitcoin only to sell a “big part of his exposure at the peak.”
In response to this on Sunday, Musk said “This is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving [the] market.”
He further revealed the groundwork for when Tesla will once again accept Bitcoin payments:
“When theres confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.”
Bitcoin surged after Elons tweet, the price went from $37,000 to $39,000 in less than 4 hours. Bitcoin is trading at $38,800 at publishing time. A break above the current range will be the start of an upward movement on Bitcoin. $40,000 is still a strong supply to watch out for.