Who approves newly created crypto currency

Tesla boss Musk is pulling down the cryptocurrencies

Tesla boss Musk is stirring up dust once again: This time on the crypto market, which he courted until recently and thus caused massive price premiums. Now it's going in the other direction. Bitcoin is trading at a three-month low.

When Elon Musk posts on Twitter, speculators in particular become aware: The tension ranges from euphoric to extreme nervousness. Because the founder of the e-car pioneer Tesla often doesn't care about the rules that apply to listed companies. Musk's tweets are often used by speculators as instructions for dealing with deals on the stock exchanges.

Latest event: With his latest tweets, Tesla boss Musk has now dealt the crypto currency Bitcoin a powerful blow: The crypto currency Bitcoin has been under massive pressure and on the decline since last week. The Bitcoin price has since crashed by over 20 percent. But the other crypto currencies were also drawn in.

Bitcoin hit a daily low of $ 42,185 on the Bitstamp trading platform. That is the lowest level since February. Other well-known digital currencies such as Ether, XRP or Dogecoin also fell significantly.

What happened? Just a few months after the CEO and founder of Tesla announced that it would accept the cryptocurrency Bitcoin as a means of payment, the withdrawal is now coming. Tesla will no longer accept Bitcoins for payment in the future. The alternative payment model, which was announced with great propaganda at the beginning of the year, is being crushed.

Musks changes from Saul to Paul

Musk, who is conjured up as the environmental and technology pioneer, only now wants to have suddenly discovered that the so-called mining of crypto currencies means a massive expenditure of energy. The transactions, the production and the determination of the exchange rate of Bitcoins via the Internet lead to a massive consumption of electricity. Entire server farms have to provide their own computing capacity, which generates huge amounts of electricity, but which is not productively reflected in goods. And the electricity generated in the process is mainly generated from fossil fuels, which should actually counteract the ideas of e-car pioneer Musk. Real environmentalists and activists objectively prove with numbers, data and facts that the production of cryptocurrencies is a pure waste of electricity.

Tesla & Bitcoin pic.twitter.com/YSswJmVZhP

- Elon Musk (@elonmusk) May 12, 2021

But Musk's change from Saul to Paul is probably purely economic. Purified and after a successful business quarter from Tesla with around 300 million profit, Musk has now pulled the plug. And in between, the Tesla boss used the Bitcoin rally for his company to apparently cash in, while others continued to bet on rising prices.

The irritation, however, is great. In the past few months, in the wake of the crypto waves kicked off by Musks, the first funds in which bitcoins and other crypto currencies were packaged have already been launched. The crypto fever was really fueled by the Tesla boss. And now the crash, because Musk had apparently suddenly changed his mind.

Which also unsettles speculators about what Tesla will do with the Bitcoin reserves. For 1.5 billion dollars, the e-car company is said to have bitcoins on the high edge. Which now raises two questions: First, does Tesla intend to throw the bitcoins on the market and now cash in? Or second: Has that already happened?

The Musk Effect

On December 20, Bitcoin was trading at $ 20,000. After Musk eagerly heated up the mood in the crypto scene, for example with the tweet to accept Bitcoin as a means of payment for Tesla, the price picked up. Acquisitions of bitcoins by Tesla itself up to a value of 1.5 billion dollars triggered hysteria among crypto speculators as well as among institutional investors and their fund managers. Bitcoin's price rose until mid-April and was quoted at 64,863.10 on April 14, 2021, the all-time high. In comparison: almost a year ago on May 25, 2020, a Bitcoin was worth just 8,719.67 dollars. And almost without perspective.

But with the change of heart and the latest tweets from Elon Musk, things recently went downhill again. On Monday, the price went to its knees again after massive losses the previous week: Bitcoin and other crypto currencies were in some cases almost ten percent below the Friday price. Bitcoin had lost a whopping 20 percent since Wednesday. But Tesla boss Musk appeased and said Bitcoins would still be a good thing. Tesla is not thinking of reducing inventory. Rather, Musk wanted to calm his Twitteria: "Tesla has not yet sold a single Bitcoin." Speculators can only trust the ghost to a limited extent. Bitcoin was still in the red on Tuesday. Around noon (CET), the minus compared to Monday was somewhat curbed at only around 1.5 percent. Bitcoin was trading at $ 44,135.70.

Bitcoin is down 20% since @ElonMusk started shitposting.

And you wonder why some people are mad? 🤔 pic.twitter.com/WDMvcptFsK

- Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) May 16, 2021

In any case, the crypto community was beside itself, especially those who believed in rising prices. It is hardly surprising that the frustration was then discharged back to Elon Musk's address via Twitter - from incomprehension to tirades of hate and the most vicious insults. Just the tweet "Bitcoin is down 20% since @ElonMusk started shitposting" generated one of many shit storms.

The Musk setting

Breaking the rules, some euphemistically calling it "disruption", is part of Musk's universe, approach and part of his setting both as an entrepreneur at Tesla and at his space company SpaceX.

The e-car pioneer exposed himself to cannabis a few years ago via Twitter and caused massive excitement. And so the US securities regulator called on the plan to investigate illegal price manipulation. Musk had to resign as CEO at short notice. The now 49-year-old South African-born Canadian has never lost the reputation of cultivating courses even with unorthodox messages. His fortune is now estimated at around $ 145 billion, according to Forbes magazine, last week it was even $ 166 billion. The crash came after he revealed himself on television that he had Asperger's Syndrome.

The fact that Musk is not so strict about the laws in other countries is also shown by the construction of a car factory and a so-called "Gigafactory" for the production of fuel cells, just outside Berlin. Construction is well advanced without having all the permits. So far it is not foreseeable when and whether this will be granted.

Whole forests have already been cleared in Grünheide near Berlin, a huge area that to date has been partly a nature and water protection area and was largely forest. In addition, Tesla will in all probability need one water consumption per day for production, with which a small town is usually supplied. The annoyance: previous calculations were based on a much lower consumption.

Tesla's construction is controversial, especially since construction has already begun, although the US company has only received preliminary permits from the authorities. Factory halls and access roads have already been built. The first cars should come off the assembly line there in June.

But not only because of the lack of permits, but also because of his reckless way of breaking laws and rules with his fearless, semi-legal and even reckless behavior or creating facts with his behavior so that the authorities could not come to any other decision than that Ultimately granting outstanding permits, despite objective concerns.

But it is not only the rules and regulations that have been exhausted to their limits that bring the critics to Musks on the scene. In addition, construction workers were employed on the construction sites during the lockdown phases of the corona pandemic. Quite apart from that, quite a few of the workers would be employed on the construction site via subcontractors under the applicable collective agreements.

And Musk never tires of criticizing the authorities that are responsible for the approval process. The US company is dissatisfied because the construction is not progressing quickly.

The Tesla crash

Tesla has seen better times on the stock market: Tesla shares [ISIN US88160R1014] were quoted on Tuesday [CET 3:15 pm] at $ 576.83, 1.45 percent weaker. But far from the annual and all-time high: the stock market darling of speculators and analysts was still quoted at 880.02 dollars at the beginning of January 2021. And thus lost over 34 percent of its value within five months.

In terms of market value, the e-car pioneer was worth more than Volkswagen, Daimler and BMW combined, even though Tesla only produces a fraction of the number of units that its competitors roll off the production line. The upper limit on the stock exchange seemed to have no limits for the Tesla fanboys and fangirls. But there are still analysts who are sticking to their forecast price target of $ 1,000.