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Highlights
- Bitcoin had a positive 24 hours after a drop of around seven percent yesterday
- Dogecoin, has jumped more than twenty percent in the past 24 hours
The Bank of England has provided a scathing assessment of Bitcoin, warning that the world’s number one crypto could be “worthless” and people with their money invested in it should be prepared to potentially lose everything.
The deputy governor, Sir Jon Cunliffe, said the Central Bank had to be ready for dangers associated with the rise of Bitcoin following its rapid rise in popularity over the past year.
Talking to the BBC, Cunliffe said the price of Bitcoin swings significantly and theoretically, the token could drop to zero.
Meanwhile, Bitcoin has had a positive 24 hours after a drop of around seven percent yesterday.
This morning, Bitcoin had risen over three percent over the previous 24 hours, to hit US$48,300.
Dogecoin receives stimulus
The meme token, Dogecoin, has jumped more than twenty percent in the past 24 hours. The price jump comes as Tesla Chief, Elon Musk, announced electric vehicle company, Tesla, will begin accepting payments in the meme-inspired cryptocurrency.
In the minutes following Musk’s announcement, Dogecoin shot up 14 percent, returning its market cap to around US$25 billion.
This is not the first time a tweet from the Tesla billionaire has resulted in a corresponding movement in the crypto space.
Earlier this year, Musk, sent a series of tweets out in support of Dogecoin, which resulted in marked jumps in the meme coin’s value.
Further to that, in May, Musk announced that Tesla would no longer accept Bitcoin as payment for their vehicles, due to the mining of the crypto’s harsh energy consumption and therefore its negative impact on the environment.
Dogecoin was valued at around US$0.19 after rising to almost US$0.22
Musk says bitcoin is more a store of value
In appointing the memecoin, Dogecoin, as the official crypto for Tesla, Elon Musk said that Bitcoin is not as good as Dogecoin for everyday payments.
After being named Time Magazine 2021’s Person of the Year, Musk compared Dogecoin to Bitcoin, saying that Bitcoin is not a good replacement for transactional currency, saying that even though Dogecoin was created as a joke, it is still better than Bitcoin in this regard.
Musk added that Bitcoin’s high transactional costs make it a good store of value rather than a currency for payments.
Musk also hinted that Dogecoin is not actually a good store of value, saying that Dogecoin is slightly inflationary.
Winners and Losers
Note: this is the past 24 hours from 12:30pm AEST
Source: Coinmarketcap.com, based on top 100 cryptos.
Image Source @ 2021 Kalkine Media
