The Influence of Elon Musk Over Bitcoin

By Aleksandra Wilson
3 min read September 2, 2021
The Influence of Elon Musk

At the end of July, Bitcoin jumped over the $30,000 mark after Elon Musk mentioned that Tesla is “most likely” to accept it again as payment. Back in May, the carmaker stated that Tesla would not take the crypto for purchases. That is due to his concerns about the impact that mining Bitcoin could have on the environment. This came out only after two months that the company started receiving the crypto as payment. During the B-Word crypto lecture, Elon Musk stated that the company would likely accept Bitcoin again.

Early this year, a group of investors and environmentalists vigorously attacked Tesla for starting to take Bitcoin as a payment method. They criticized that Tesla was seen as an environmentally responsible company, and taking energy-intensive crypto was a contradiction. 

Elon Musk Direct Influence

The founder of Tesla has also been in the spotlight to use his privileged position and popularity to back up different crypto. While in a conference earlier this year, he commented that besides Tesla and SpaceX, his rocket company, he owned a variety of cryptos, such as Bitcoin, Ethereum, and Dogecoin. His statement, of course, caused an increase in said cryptocurrencies. He also mentioned that he had already participated in the artificial rise in cryptocurrencies before he planned to sell them but would like to see Bitcoin succeeding.

After those comments, there was an increase in Bitcoin of 6% at $31,952, Ethereum 10.6% higher at $1,979. All this according to the website Coindesk.

Elon Musk

Long-term Investments

The CEO of Tesla and SpaceX has stated on several occasions that he has no plans of selling his crypto anytime soon. If you decide to invest in Bitcoin, experts on the subject suggest sticking with a strategy long-term instead of trading short-term. Some recommend planning to hold for about ten years at least.

When we consider that costs for crypto can be high, we can conclude that buying and holding can be of benefit in that regard. A good approach is to view Bitcoin as something you should hold on to for a more extended period. Even though it might be tempting to trade while following social media, experts recommend fighting this urge. 

Understanding the Risk

Before launching yourself into an investment in Bitcoin or any other coin, you should learn about it and understand all the possible risks. It’s important for new investors to understand that the asset is very volatile. One has to be comfortable with fluctuations and also the possibility of losing money. There are no guarantees. The cryptocurrency universe is hardly regulated, so you should ensure that whatever you choose to invest is something you can afford to lose.

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