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When Elon Musk revealed that Tesla had purchased $1.5 billion worth of Bitcoin three months ago, proponents of the digital currency claimed that this move would accelerate its widespread use as a corporate financing tool .
However, on Wednesday, Musk withdrew his personal approval, Swore to accept cryptocurrency As a payment for Tesla Motors, and undermined Tesla’s justification for using it as a destination for storing its remaining cash.
As usual, Musk’s comments immediately provided motivation for crypto traders and provided ammunition for the fighting crypto tribes on Twitter. However, it is difficult to say whether his announcement will have any impact on broader currency perceptions, and it is also difficult to say what role Musk’s views will play in the next phase of cryptocurrency adoption.
Professor John Coffee of Columbia University Law School said: “He always said it every two days, and it was inconsistent.” Tesla’s pretentiousness Push Bitcoin into the mainstream Coffee added that the voices used by companies always sound inferior to their interest in pure financial speculation. “I think his first investment is more of a currency investment than anything else.”
Regardless of the reason behind the repeated love between Musk and Bitcoin, his influence on market prices has always been Hard to ignore.On the day Tesla’s investment was disclosed, the price of the currency rose by 15%, and Down by 6% Within 24 hours after the announcement this week.
The most recent drop came a few days after Musk jokingly condemned Dogecoin, another cryptocurrency he promoted vigorously. The “hustle and bustle” on American TV, Its value dropped by 15%.
JP Thieriot said: “There is no doubt that he has become the most important factor in cryptocurrency in terms of price increases.” Thieriot suggested that his influence also extends to shaping people’s perceptions of digital currencies.
However, even Musk cannot force cryptocurrency to become mainstream commercial use. He said this week that Tesla no longer accepts payments in currency due to the environmental impact of energy-intensive “mining” used to verify transactions. Well-known problem He used to ignore it.
Many crypto experts say that Musk’s change of mind seems to reflect people’s recognition that Bitcoin is not suitable for payment. Other companies that have accepted Bitcoin as a payment method in the past, including Dell and Microsoft, have since abandoned it.
Wilson Withiam, an analyst at Messari, a cryptocurrency research organization, said: “I don’t think many people are willing to spend their bitcoins.” “If there is actual money behind them, [Tesla] Did you really do it? “
Musk’s heart shift goes beyond the issue of payment. He also vowed not to allow his electric car manufacturer to become an active participant in the Bitcoin market and stated that it will “not sell any Bitcoin.”
This promise is two weeks after Tesla gave Wall Street a surprise $101 million in profit The dumping of some shares has raised concerns that the company’s performance will increasingly be linked to crypto trading.
The promise not to sell shares may reassure some investors, but it also effectively undermines Tesla’s reasons for using its currency as part of its daily corporate treasury business.
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Tesla’s Chief Financial Officer Zach Kirkhorn told Wall Street two weeks ago that the liquidity of the Bitcoin market justifies Tesla’s holding of the cryptocurrency because it means the company can Actively buy and sell.
He said this flexibility is particularly important because Tesla faces more cash needs to fund factories in Texas and the United States. Germany At the same time, it is also dealing with extreme financial pressures in its supply chain due to global semiconductor shortages.
Kirkhorn said: “Now, for us, it is very important to get cash quickly.” A tweet from Musk promised to lock up the company’s cryptocurrency investment, thereby undermining this reason.
Some Bitcoin supporters said that Musk still paved the way for corporate treasurers to adopt Bitcoin more widely by encouraging other companies to treat Bitcoin as a valid holding. Almost no examples Others announced that they were buying currency.
Rayne Steinberg, CEO of the digital asset management group Arca, said that his initial passion for Bitcoin has aroused interest, including interest in the treasurer, and this interest may continue until his recent turnaround. “People are talking about it, it has entered the spirit of the times.”
However, some corporate treasury experts said that Tesla’s flirting with cryptocurrency holdings did not encourage wider adoption.
New York Treasury partner Jerry Klein (Jerry Klein) said: “This has caused a conversation between the treasurers, but I don’t think it will change anyone’s mind.” Klein added that for the treasurer, The most important requirement to preserve the company’s cash value completely excludes cryptocurrencies.
However, if Musk’s involvement in Bitcoin fails to change the currency’s position in the corporate world, then his latest intervention will bring another prospect: he can Become the king So that future cryptocurrencies can compete with Bitcoin or even replace Bitcoin.
Supporters claim that using his celebrity to attract people’s attention to Bitcoin’s massive energy consumption, and that many participants in the network are in China and rely on coal-fired power stations, which may speed up the search for alternatives.survey Millennials and Generation ZUphold’s Thieriot stated that they are big buyers of cryptocurrencies, indicating that they are also deeply concerned about climate change. He said: “Ultimately, these things must merge.”
Musk’s remarks caused an immediate scramble for cryptocurrency supporters, who claimed to have less adverse environmental impact. These include Bitcoin Zero (a carbon-neutral version of Bitcoin) and Cardano, one of several networks that use a so-called proof-of-stake mechanism to verify transactions and consume less energy.
However, most newer networks are struggling to win attention and share of crypto investment. Most of the attention of the displacement is focused on the digital token ether used on the Ethereum network. The total value of its tokens is $440 billion, which is almost half the value of Bitcoin.
Withiam said that Ether has been used by some investors as a digital currency, and its long-term plan for the proof-of-stake system will eventually be completed within next year, which makes it possible to win wider support. Messari (Messari) analyst.
Musk did not immediately show which cryptocurrency would win his favor when he left Bitcoin, but he did hint at this. On Thursday, he tweeted: “Work with Doge developers to improve system transaction efficiency. Potential hope.”
He said that Tesla wants to use a token that consumes 1% less energy than Bitcoin, and this comment is bound to make cryptocurrency investors guess-and ensure that everyone’s eyes are on his tweets. , In order to find the next clue of thinking.
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