An Exaggerated Market Response
I think the market responded in an exaggerated manner with the news that Tesla stopped accepting Bitcoin payments for its cars.
The market forgot that long before Elon Musk entered the crypto market and abused his influence, Bitcoin and a lot of altcoins are already doing well.
There are three things that we must always remember. First, the value of the whole crypto market does not depend on a single or few influencers. They can indeed move the market only because we allow them. The value of Bitcoin and altcoins depends on all of us. Influencers, just like us, are just part of the market and are not above us.
Second, Tesla is currently seeking entry into the U.S. renewable fuel credit market. In order to make their image pristine, they decided to give in to what regulators wanted to see from them instead of educating or at least informing regulators that at least seventy (70) percent of Bitcoin mining uses renewable energy. Not to mention the fact that rising energy costs from fossil fuels are driving miners to utilize renewable energy sources.
Last, who wants to buy a Tesla car with a Bitcoin? Even if I have thousands of it, I would not waste my money. A Tesla car depreciates in value over time while Bitcoin continues to grow in value. I can just buy a Toyota or Honda or Ford or Subaru which costs way less than a Tesla car and could even last longer with less expenses for maintenance.
An Exaggerated Market Response
I think the market responded in an exaggerated manner with the news that Tesla stopped accepting Bitcoin payments for its cars.
The market forgot that long before Elon Musk entered the crypto market and abused his influence, Bitcoin and a lot of altcoins are already doing well.
There are three things that we must always remember. First, the value of the whole crypto market does not depend on a single or few influencers. They can indeed move the market only because we allow them. The value of Bitcoin and altcoins depends on all of us. Influencers, just like us, are just part of the market and are not above us.
Second, Tesla is currently seeking entry into the U.S. renewable fuel credit market. In order to make their image pristine, they decided to give in to what regulators wanted to see from them instead of educating or at least informing regulators that at least seventy (70) percent of Bitcoin mining uses renewable energy. Not to mention the fact that rising energy costs from fossil fuels are driving miners to utilize renewable energy sources.
Last, who wants to buy a Tesla car with a Bitcoin? Even if I have thousands of it, I would not waste my money. A Tesla car depreciates in value over time while Bitcoin continues to grow in value. I can just buy a Toyota or Honda or Ford or Subaru which costs way less than a Tesla car and could even last longer with less expenses for maintenance.