According to analysts, Elon Musk’s tweets about Bitcoin continue to influence its value, driving cryptocurrency price volatility and reducing its uptake.
Last week, Musk said Tesla would stop accepting Bitcoin payments for the car, sell Bitcoin reserves and cause a crash into its value. Over the weekend he seemed frustrated with plans to sell Bitcoin, causing a recovery in sales.
Danyaal Rashid, Global Data’s Theme Analyst, told just-auto: The fact that he can drive such price fluctuations, even though his words should be worrisome to people.
“Whatever Elon’s view of cryptocurrencies, it’s clear that he now has an undue influence on prices. One centralized person who exercises so much control is” decentralized. Completely devise the concept of “finance”. Adoption of cryptocurrencies to the mainstream, especially in payments. “
Rashid argues that currency price stability is needed. “Whether we consider crypto as a currency or an asset, we need some price stability,” he says. “Every asset has a certain level of volatility, but we expect these price fluctuations to be somehow related to fundamentals and real-world events.
“Even if you think the market is irrational and deviates from real-world fundamentals, individuals rarely have this much power over price, as evidenced in the last 15 months. If this continues, people may lose confidence in these. Cryptocurrencies as a single tweet from Musk can radically change prices-actual fundamentals are working Breaking the Thought This is at the heart of the problem: Cryptocurrencies need some degree of stability to become widespread and embedded, which is certainly in the hope that people will pay in cryptocurrencies. If so, payments will be infeasible if weekly price fluctuations are expected to be up to 20%. “
Mask’s “Flip-Flops” Damage Bitcoin-Analyst | Automotive Industry News
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