Why Does Elon Musk Have so Much Power Over Bitcoin?

By  //  June 29, 2021

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Over the past few weeks, a lot of hate and confusion has been directed towards Tesla founder, Elon Musk. The celebrity engineer has made front-page news multiple times now for his tweets about Bitcoin, Dogecoin, and the crypto market in general.

But does Elon really have so much influence over crypto prices, or is this just an “immature reaction” from retail buyers? Don’t forget that we saw a huge inflow of money over the past quarter when bitcoin grew nearly 150% as a response to bullish news.

Amateur investors and those sitting on the sidelines who chose to buy bitcoin in large amounts expected a six-figure price. What they got, however, was a 50% correction and an unhealthy amount of anger towards Musk.

Elon Musk’s power game

Why does Elon musk use his power to bash Bitcoin, the most important technological advancement since the creation of the wheel, and rather supports Dogecoin, a literal joke?

Most retail investors never look past the price of Bitcoin, which keeps them rather stuck to the surface of the issue. To understand the power game and the reality of the situation, we need to look at the potential reasons behind the FUD directed towards Bitcoin.

Tesla receives government funding

For the most part, Tesla’s revenue and cash reserves are not a result of car sales, but rather government subsidies, given to advance a greener outlook for our world. A more sustainable future where carbon is no longer expediting climate change.

When Tesla first bought bitcoin in February of 2021, it’s safe to say that a long-term outlook of the implications was not in the plans. While the news had a positive impact on the market, the effect was only short-term.

Tesla sold off 10% of its BTC holdings a couple of months later and stopped accepting Bitcoin for their cars. The reason? Bitcoin is supposedly mined using (primarily) coal fuel, which is not a sustainable and renewable energy source. Of course, these claims are far from true when one delves deeper into the matter, and it is unlikely that Elon was not aware of this in the first place.

All in all, the FUD seems rather shady. Why try to intentionally decrease the value and conviction of Tesla’s investment, becoming a hated influencer along the way? There are three primary reasons we can think of:

■ Elon Musk is forced to do this by the same people/agencies that fund Tesla’s plans for a sustainable future.

■ Elon wants to improve the way Bitcoin mining works in order to increase its potential for global adoption.

■ It could also be an effort to decrease prices in order to buy back into Bitcoin using larger amounts of money.

In all cases, it’s hard to think that the founder dislikes Bitcoin, and would rather opt for Dogecoin. And this can be seen even more clearly when looking at his recent changes of avatar pictures on Twitter.

Elon Musk avatars signalize bullish conviction

Critical thinkers, a.k.a. conspiracy theorists, have recently taken it to Twitter to analyze the cryptic messages and Elon’s tweets, as well as the rapid change of his profile pictures.

According to Twitter user @habitbumber2 the avatars of Elon Musk share an interesting short story.

The first image (top left) depicts Elon as Wario, the antihero or the Mario games, claiming to have killed the hero. The theatrical satire was part of a Saturday Night Live episode that for most were simply awkward and strange. When asked to take the stand to talk about his “crime”, Wario mentions that he is “not bad, but simply misunderstood”. It is during this time that he has this avatar that Elon unleashes most FUD against Bitcoin.

Shortly after receiving tons of hate from the popular social media platform, the founder of Tesla changed his profile picture to an older picture he had used several times prior and kept it only for one day (top right). The picture depicts an anime character of a girl in a Bitcoin outfit, with laser eyes. The laser eyes are being used by many Bitcoin maximalists as a statement for their strong conviction of an eventual $100.000 Bitcoin.

A  day later, Elon switches back to a completely black avatar (bottom left), often used to signal the mourning for the death of a loved one. And finally, we see a similar black picture with orange light shining through it (bottom right). So what does this all mean?

The Twitter user who compiled the pictures as a story believes that the message behind the pictures goes as follows:

I pretend to be the anti-hero (top left) so that your expectation of a 100.000$ bitcoin (top right) dies (bottom left). But don’t worry, eventually, bitcoin will outshine my efforts (bottom right).