Elon Musk is at it Again with Bitcoin

Elon Musk needs to start being very careful with what he says regarding Bitcoin. The SEC is already at his front door after his tweet caused Bitcoin to surge to a new all-time high of $50,000, but it seems he hasn’t had his fun quite yet.

After calling the current price of Bitcoin, the price which he is responsible for, “excessive,” the market dipped almost $10,000 in value.

Once can be called a mistake, but it’s hard to call Musk’s continued public input on Bitcoin anything short of market manipulation.

That’s not to say that he isn’t entitled to an opinion on the currency, but when his opinion holds the power to knock five digits off of someone’s investment in the space of a few hours, he needs to mind what he says.

Don’t get me wrong, Bitcoin was overvalued and was due a serious correction, but one that’s induced by a tweet rather than the market is artificial.

The price of Bitcoin should have been stabilizing. Instead, where the value lands are completely up in the air.

Is this a Good Time to Invest in Bitcoin?

I’m going to be honest with you; I have no idea; it depends on what side of the bed Elon Musk wakes up on tomorrow.

In all seriousness, it’s impossible to say whether or not now is a good time to buy. The market is incredibly volatile, and no one is able to predict its movements.

Bitcoin is an investment that everyone should consider making at some point, but it might be worth your while waiting out the storm for Bitcoin to correct itself back around the $35,000 price mark.

It might never go that low again, though, or it might plummet beyond that. It’s impossible to say.

What Elon Musk Means for Bitcoin… Again

I’ve talked about how Elon Musk’s influence over Bitcoin is a serious concern, but things just got a lot worse.

How can anyone in the mainstream take Bitcoin seriously when the value of it wagers on the voice of one man is beyond me.

You’re not going to see the dollar lose 20% of its value because Joe Biden makes a tweet, so how is Bitcoin ever meant to be a serious contender to fiat currency?

The Bitcoin market needs to come up with a solution for this, and they need to do it quickly. Otherwise, Bitcoin faces a crisis that may destabilize it forever—especially with Ethereum and Tether chomping at its heels.

Inflation is Pushing Companies to Bitcoin

Tesla’s $1.5B investment in Bitcoin comes as a direct response to inflation. The dollar has a negative year-on-year interest rate, so it’s only natural that companies would seek alternative means of storing value.

In all honesty, it’s more surprising that it’s taken this long. The dollar is continuing to take a beating through nothing more than production. When you through the pandemic and the instability of US politics on top of that, you have a recipe for disaster.

Someone Take Elon’s Phone Away!

We can joke and make light of the situation all we want, but the Bitcoin market needs to take a long, hard look at itself.

The more influence individuals like Musk are given over the value, the weaker the coin is going to become in the long run.

It’s a seemingly impossible task to tackle, but someone has got to do something and do it fast.