Elon Musk is rooting for Bitcoin to succeed, and that there are no plans to “dump” the cryptocurrency any time soon. While the Tesla CEO admits to being a supporter of Bitcoin, Musk also reiterated caution around the environmental issues it might cause. Musk has quite a tumultuous history with Bitcoin, from allowing Tesla customers to purchase its electric vehicles using the cryptocurrency only to suspend the payment method just under two months later.
The change of heart was due to concerns over the mining of Bitcoin causing a rapid depletion of fossil fuels. Despite lauding the cryptocurrency for having a “promising future,” the entrepreneur explained that it shouldn’t come at the cost of the environment. With Bitcoin now slowly recovering from a major drop in price caused by China’s ban, Musk was once again discussing the cryptocurrency.
During an interview at The B Word conference, Musk revealed that both Tesla and SpaceX are holding Bitcoin, according to CNBC. Musk also admitted to personally holding Bitcoin, as well as Ethereum and even Dogecoin. The Tesla CEO stressed still being a “supporter of Bitcoin” and “the idea of cryptocurrency in general,” while explaining that its decentralized nature and having “an open ledger” makes it a good candidate for functioning as a form of currency. However, Musk also pointed out the tendency of Bitcoin to consume too much energy, noting that’s “not good for the environment” and still something to “watch out for.”
A Good Sign For Bitcoin’s Future?
The values of popular cryptocurrencies like Bitcoin, Ethereum and Dogecoin have been more volatile than usual over the past few months. However, Musk’s reaffirmed stance on cryptocurrency could help to bring some stability to its value, and possibly even hasten its potential future application. Despite being rather cautious over Bitcoin’s potentially hazardous energy consumption, Musk did reveal plans to continue holding for the long run. The Tesla CEO has been accused in the past of manipulating the market using “pump and dump” tactics, but Musk looked to provide some reassurance that isn’t the case.
Musk “definitely” doesn’t believe in profiteering off cryptocurrencies by pumping their price up and then then selling. In fact, Musk stressed the point of actually losing money if Bitcoin’s value sinks, and even admitted that, while the CEO “might pump” (the price), he doesn’t “dump” or sell (the coin). Furthermore, Musk also teased the likelihood of bringing Bitcoin back as a payment option for Tesla customers again in the future. Of course, whether or not Musk, Tesla or SpaceX will actually continue to hold and accumulate Bitcoin or other alt coins, or if they will proceed to sell off and buy back for the sake of profits, still remains to be seen. After all, it’s worth noting that Tesla did net a sizable amount from selling a portion of its Bitcoin after just a few months of holding, so it’s hard not to rule out another major selling off in the future.
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