Musk has since tweeted that the company only sold bitcoin to “confirm BTC could be liquidated easily without moving market.”

Besides what he’s claimed in tweets, we don’t actually know if Musk, one of the richest men in the world, is buying or selling bitcoin after his tweets. Cryptocurrencies like bitcoin are not subject to US securities law and receive less oversight than stocks. On May 11, the Securities and Exchange Commission warned about the “lack of regulation and potential for fraud or manipulation” surrounding bitcoin.

In 2018, the SEC dinged Musk and Tesla $20 million each after his tweet that he had “funding secured” to take Tesla private at a much higher share price sent the stock soaring. Funding hadn’t been secured.


The SpaceX CEO also sent dogecoin prices up 30 percent in May after tweeting that he was working with dogecoin developers to improve the currency’s efficiency. A similar tweet later in May also caused dogecoin prices to rise.

Earlier in the month, SpaceX said it would accept the meme-inspired coin as payment for sending payload trips to the moon. The company also said it would be sending a 40-kilogram cube satellite named DOGE-1 to the moon.


SpaceX executive Tom Ochinero said the satellite “will demonstrate the application of cryptocurrency beyond Earth orbit and set the foundation for interplanetary commerce.”

All of this is to say that Musk’s tweets greatly impact crypto prices.

Here’s what his tweets look like against the bitcoin price over a few weeks in May and early June:

“In cryptocurrencies, it’s as important to understand memes and the social layer as it is to understand the technology and game theory that make bitcoin a secure network,” Galen Moore, director of data and indexes at CoinDesk, told Recode. “It also raises uncomfortable questions about price manipulation.”

In February, Tesla purchased $1.5 billion in bitcoin, helping send prices to a then-record high. Tesla then sold about 10 percent of it — to the tune of $101 million — according to its first-quarter earnings report.

The sale made it possible for Tesla to turn a record profit. Indeed, Tesla made more selling bitcoin than cars.

Elon musk argue bitcoin incentivises renewable energy

As Elon Musk tweets go, so goes the crypto market. The billionaire and Tesla CEO has been tweeting about crypto a lot, too, sending the price of bitcoin — as well as dogecoin — up and down with fewer than 280 characters.

Musk’s cryptocurrency tweets in the past two months have been particularly impactful for bitcoin. Musk’s latest bitcoin tweet on Sunday night shot the price of the cryptocurrency up by nearly 10 percent.

Musk’s tweets, while not necessarily posted for his own financial gain, can greatly affect investors in cryptocurrency.
They also raise questions about the solidity of a market that can be so easily swayed, especially as retail investors increasingly flock to cryptocurrencies.

That tweet made the price of bitcoin drop to its lowest level since February.

Indeed

— Elon Musk (@elonmusk) May 16, 2021

On May 17, Musk said that Tesla has not sold bitcoin recently, which seemed to halt the drop and keep prices roughly around $45,000.

To clarify speculation, Tesla has not sold any Bitcoin

— Elon Musk (@elonmusk) May 17, 2021

A week later, Musk seemingly tried to address the issue of bitcoin’s environmental impact by calling North American bitcoin miners’ plan to publish renewable usage “potentially promising.” That sent the price up 4 percent.

Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so.

If miners could capture just 20% of wind and solar energy that is delayed on US power grids, BCEI projects that global mining capacity could triple.

Additionally, costs for renewable energy would also see a rapid decline. This is because “bitcoin and energy markets are converging” and BCEI believes that “the energy asset owners of today will likely become the miners of tomorrow”.

However, the argument could be viewed as a justification for bitcoin’s energy consumption.

This begs the question: how much is pristine money – which has never existed in the history of mankind – worth; the answer of which could be found in the trade-off with energy consumption as the network grows.

Subscribeto the semi-weekly newsletter for regular insight into bitcoin and crypto.
Go on.

Zach knows first-hand how hard companies in the BSV space are working to make the technology as efficient as possible. In his role at Unbounded Capital, it is his responsibility to spot and invest in exciting companies building on BSV.

“We’re very much constrained by capital, not by opportunities, there’s a ton of incredible entrepreneurs,” he says.

Indeed, many of those entrepreneurs have become successful with Unbounded Capital’s support.
Zach believes that one of the things that is “unique about Bitcoin is that you have a much higher percentage of companies that are generating revenue… from the beginning.”

One such example is popular derivative trading platform TDXP which successfully leverages BSV’s micropayment features by allowing customers to trade for a cent or less.

The researchers explained that the divergence between renewable energy production and electricity demand could be mitigated by creating an ecosystem “where solar/wind, batteries, and Bitcoin mining co-exist to form a green grid that runs almost exclusively on renewable energy.”

Not only is this doable, it is doable without jeopardising the sector’s profitability.

Following this line of reasoning, the authors go on to describe the bitcoin mining sector as “an energy buyer of last resort” that can be situated anywhere on the planet.

The paper asserts the geographical limitations of renewable power plans, which typically results in energy supply being “either abundant or non-existent”.

The end result is significantly more power than society typically needs for a few hours per day and not nearly enough when demand spikes.

Potentially promising.— Elon Musk (@elonmusk) May 24, 2021

Musk didn’t stop there: On June 3, he tweeted a meme about breaking up with bitcoin, and the price of bitcoin declined 5 percent.

Most recently, Musk tweeted that Tesla would again accept bitcoin once miners moved to “reasonable” clean energy usage. This tweet brought the cryptocurrency’s price up 8 percent and his tweets about bitcoin full circle.

This is inaccurate.
Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.

When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.

— Elon Musk (@elonmusk) June 13, 2021

Musk’s crypto tweets aren’t isolated to bitcoin.

Governments and legacy financial systems all over the world are discovering that it’s not easy being green. And Bitcoin is no exception. Elon Musk famously reversed his decision to accept BTC as payment for Tesla in May, citing environmental concerns as the reason.

But many in the Bitcoin SV world are confident that it can and will be eco-friendly.

Zach Resnick, Managing Partner of venture capital fund Unbounded Capital, is one of many unconcerned BSVers. “We would argue that Bitcoin is perhaps one of the most eco-friendly technologies ever created,” he says.

Zach argues that Bitcoin’s design incentivises miners to find cheap energy to maximise their profits. As renewables are cheaper, they are encouraged to find or create clean, renewable sources of energy.

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