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Elon Musk, once the most prominent proponent of Bitcoin, has abandoned the currency and its most ardent supporters.
Elon Musk, CEO of Tesla and SpaceX, may have hinted today on Twitter that Tesla has sold or expects to sell its Bitcoin.
When Twitter user @CryptoWhale tweeted the hypothetical scenario that “Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings,” Musk replied with a single word: “Indeed.”
While it’s unsure which aspect of Musk’s tweet he agrees with (the prediction Tesla dumped its Bitcoin or the remark on how much hate he’s getting), or if he agrees at all, the suggestion that Tesla might dump the 43,200 Bitcoin it purchased in February for $1.5 billion instantly lowered the price of Bitcoin by nearly $5,000, to $44,700.
Musk, who has spent most of the year openly endorsing Bitcoin, began criticising it earlier this week, citing the environmental destruction incurred by fossil-fuel-powered Bitcoin mining operations.
The majority of today’s harm was done as Musk broadened his critique of Bitcoin, hurling insults at some of the most famous Bitcoin maximalists on Crypto Twitter and ripping through their assertions that proof-of-work mining aids in network decentralisation.
“Hello, cryptocurrency “experts” have you ever heard of PayPal? It’s likely… maybe… that I know [more] than you understand about how money works,” Musk, who co-founded PayPal, tweeted.
Musk also slammed crypto podcaster Peter McCormack, who called Musk’s latest critique of Bitcoin’s environmental effects “poorly informed.”
McCormack had tweeted extensively on why he thinks Musk is incorrect, mirroring the countless Twitter posts that had done the same. Musk’s critiques of Bitcoin and advocacy for Dogecoin, McCormack concluded, “may be the perfect troll… or you might actually believe this (God I hope not).” “Obnoxious threads like this make me want to go all in on Doge,” Musk replied.
Musk has targeted Michael Saylor, the Bitcoin bull who has spent billions of dollars on Bitcoin from the treasury of his business, the U.S. cloud infrastructure firm MicroStrategy.
Musk referred to him as “Saylor Moon,” and advised him to dress up as the anime character Sailor Moon, “with ‘Bitcoin’ tattooed high on thighs.” Saylor took the jab on the chin until redirecting Musk to his own Bitcoin education section.
Musk also slammed the argument that Bitcoin’s proof-of-work consensus process aids in its decentralisation.
“Bitcoin is actually highly centralised, with the supermajority controlled by a handful of large mining (aka hashing) companies,” he tweeted. A single coal mine in Xinjiang flooded, nearly killing miners, and Bitcoin hash rate fell by 35%. “Does that sound “decentralised” to you?”