Elon Musk’s Flip-Flop Relationship with Crypto Oozes Irony

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Summary

  • On Sunday night, an Elon Musk tweet triggered a 12% drop in Bitcoin’s price when Elon replied “indeed” to a tweet that suggested Tesla might drop the rest of the cryptos from their portfolio.
  • Crypto was created to be peer-to-peer democratisation of finance. Yet, it would appear this aspiration has not come to fruition given that one person can affect the price of Bitcoin.

There have been few relationships that have captured the public’s imagination, like Elon Musk’s relationship with Bitcoin. Brad and Jen. Kim and Kanye. J-Lo and A-Rod. Brad and Angelina. And now Elon and Bitcoin or “Elcoin” as it would probably be known if Bitcoin was a person. Instead, Bitcoin is a digital currency with over a trillion dollars of capital invested in it. It takes up almost half the market share of the entire crypto market. However, the Bitcoin network of users – traders and investors alike – are people. Millions of people. And like a wife whose husband arrived home at two-thirty in the morning smelling like liquor and cheap perfume, many of those millions of people are currently livid with the enigmatic Tesla billionaire.

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On Sunday night, an Elon Musk tweet triggered a 12% drop in Bitcoin’s price when Elon replied “indeed” to a tweet that suggested Tesla might drop the rest of the crypto from their portfolio. The tweet Elon replied to had also indicated that with all the “hate” Elon had been receiving, on the back of his decision to stop Tesla from accepting payments for their vehicles with Bitcoin, Elon would be perfectly justified dropping Bitcoin from the Tesla portfolio. Bitcoin’s price, as of 6:15 AM GMT on Tuesday, was US$45,815.

Source: © Elnur | Megapixl.com

Not since George Lucas selling Star Wars to Disney has such an expensive business decision been made (potentially) because of some disgruntled social media users.

INTERESTING READ: Crypto Market Down: Is Elon Musk ‘Pumping & Dumping’?

The SEC Won’t Let Musk Be

Last month, rumours circulated that Musk was being investigated by the Securities and Exchange Commission (SEC) over claims that he’d been manipulating the price of Dogecoin. Musk has been an enthusiastic proponent of the cryptocurrency, which was initially started as a joke satirising other cryptos. Today Dogecoin finds itself in the top five cryptocurrencies in the world. However, its meteoric rise can almost be entirely attributed to some Musk tweets in support of the coin. In response to the SEC rumours, Musk tweeted, “Fate loves irony”.

Indeed.

It is unclear, though, whether Musk is aware of the irony of the price of a peer-to-peer network such as Bitcoin being so adversely affected by one man’s decision. Not even decisions. Possible decisions.

Bitcoin, and all crypto, for that matter, was supposed to democratise finance. A lofty aspiration, to be sure, but potentially achievable given the fact that cryptocurrencies eliminate the middleman of a traditional financial institute. And yet, the oligarchy, which has been a feature of the traditional world of finance its birth, has somehow seemingly snuck its way into the crypto world. As Professor Ian Malcolm says in Jurassic Park, “Life finds a way”.

Indeed.

ALSO READ: Will environmental concerns pave the way for Bitcoin to get greener?


 


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