BIgONE Interpretation: Elon Musk wants bitcoin mining to be done with “clean energy.” What impact will it have on the bitcoin market?
The ‘power-hungry’ character of bitcoin became a hot subject after Elon Musk, CEO of Tesla and SpaceX, stated that Tesla would stop accepting bitcoin payments until bitcoin miners began using clean energy. He tweeted this just a few months after announcing that Tesla would begin taking Bitcoin as payment for its electric vehicles. He later retracted his statement, claiming that he does not want his decision to accept bitcoin payments to negatively influencing the environment.
He announced on May 24th that he has spoken with Bitcoin miners in North America and that sustainable energy is the solution to the bitcoin mining energy consumption problem. Elon Musk’s comment has prompted the bitcoin mining industry to investigate clean energy as a viable alternative to fossil fuels for bitcoin mining.
His statement has created doubts about the nature of bitcoin.
For transaction confirmation on the blockchain, Bitcoin employs a proof of work technique. This process necessitates the employment of numerous computers, each of which consumes a significant amount of energy. According to a Forbes advisor, “If Bitcoin were a country, it would be listed among the top 30 in the world in terms of energy use.” Elon Musk is completely correct in his concern about the environmental impact of bitcoin mining. According to another estimate by the Cambridge Center for Alternative Finance (CCAF), pure renewable energy, primarily hydropower, powers 39% of encrypted mining. By any definition, this is a poor picture of clean energy. Excessive reliance on fossil fuels endangers the ecosystem. Mining with fossil fuels would become a major environmental issue as the popularity of bitcoin and cryptocurrencies grows. There are several types of clean energy like solar energy, wind energy, and hydropower that can be used instead of fossil fuels.
What BigOne Thinks
Will Elon Musk’s comments have an impact on the bitcoin market? While it appears that Elon Musk has the ability to influence Bitcoin, we would like to point out that bitcoin has always been a speculative asset. While market sentiments can sometimes determine the trajectory of Bitcoin’s movement, bitcoin has proven over time that it is a truly decentralized asset whose prices can not be influenced by anyone.
In the aftermath of such unforeseeable events, BigOne would like to urge our users to undertake market research, trading, and fundamental analysis as needed, practice adequate risk management, and book profits on time. Nobody can properly anticipate the price of any crypto asset or how the market will respond to specific pronouncements. Still, given what we’ve seen over the last decade, it’s not unreasonable to expect prices to climb again. “
In terms of Bitcoin’s outlook, things may be looking grim right now. The crypto markets are currently processing a cascade of news that fuels the bear case for price development. Even though bitcoin’s price has dropped by around 30%, the truth remains that the price of bitcoin has increased by nearly 300 percent in the last year. Still, historically, this is just another hurdle for Bitcoin to overcome and a small one compared to what it has braved in the past,” Ulrik Lykke, executive director of the crypto hedge fund ARK36, said.
BigOne would like to remind customers that, while market feelings have the ability to change market cycles, it is equally critical to adopt the Market Sentiment Analysis trading method. Users must acquire samples of other users’ thoughts, opinions, and ideas if BigOne wants them to undertake their own research and assess market attitudes. We want our users to know that social media may be used to analyze market sentiment. You can get a large picture of market emotions by using social media networks. You can use the following tools to monitor market sentiment on social media:
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BigOne wants its customers to understand that evaluating market feelings will help them better understand cryptocurrency sentiment. Knowing the current market reality and sentiment will help them make better trading decisions.
BigOne wants users to know those market sentiments and public pronouncements that might cause the volatile bitcoin to fluctuate because the cryptocurrency market is still in its early stages.
BigOne thinks that by collecting data from social media sources to understand market feelings and perceptions, its customers will be able to make better trading decisions and be more prepared for market price volatility. You may trade bitcoin and other cryptocurrencies wherever and anywhere you choose with Bigone.com. You may expect a terrific trading experience with various trading features, such as establishing market price alerts, a price signal index, and low transaction fees.
BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.