Suffering consecutive blows, will the cryptocurrency fall?

Tram Ho

Elon Musk’s spectacular “flip”

In recent times, Elon Musk has been the main driver of cryptocurrency price fluctuations. The fact that this famous eccentric billionaire has an interest in Bitcoin has caused this digital currency to increase sharply. At the peak, Elon Musk announced that Tesla had invested $ 1.5 billion in Bitcoin and Tesla accepted it as a payment method when buying a car, causing the largest cryptocurrency by market capitalization to skyrocket.

Not only Bitcoin, Elon Musk also mentioned Dogecoin and turned it into a phenomenon in the cryptocurrency village. Inspired by the image of a dog, no one Dogecoin has skyrocketed and reached the top 10 largest market capitalization cryptocurrencies. However, the technology and applications of Dogecoin became completely eclipsed by its bull run.

However, on May 12, the world’s second-richest billionaire threw cold water on Bitcoin and the global cryptocurrency market. In a message on Twitter, Elon Musk said that Tesla will stop accepting Bitcoin payments because they are harmful to the environment.

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“Tesla has suspended Bitcoin car purchases. We are concerned about the rapid increase in the use of fossil fuels for Bitcoin mining and trading, especially coal, which is the most polluting fuel. Tesla has not sold any Bitcoin and intends to use it for trading when Bitcoin mining uses more sustainable energy,” Elon Musk said.

Immediately, Musk’s message line created a bloodbath in the cryptocurrency market. All coins in the top 10 by market capitalization sold off. Ethereum alone maintained a drop of less than 10% while other coins all lost 10-20% of their value after a few words of the second richest billionaire in the world.

Not only causing the coins to fall in price, Elon Musk’s statement also made the world suspicious of cryptocurrencies when they use too much energy to mine and trade. A statistic shows that, if Bitcoin is a country, the amount of electricity it consumes is only slightly less than that of Vietnam and better than Argentina.

Ethereum Creators Sell Meme-Based Cryptocurrency

In the recent move, Vitalik Buterin, the creator of the Ethereum cryptocurrency, has sold meme-based digital currencies to support charity. Specifically, a meme digital currency worth $1.2 billion as of the morning of May 12 was donated to the India Covid-19 Relief Fund, a new fund established late last month. In addition, $431 million in Akita virtual currency was also transferred by Buterin to Gitcoin, an Ethereum-based public fundraising platform.

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Vitalik Buterin, the creator of the Ethereum cryptocurrency.

This move immediately led to a wave of selling off the meme-based virtual currency. In just a few minutes, a series of these digital currencies lost up to 95% of their value. It also helps prove that the meme crypto market is really unstable and investors can lose everything when the sharks exit.

Recently, the price increase of Dogecoin has caused a series of meme-based digital currencies to be born. And they also increase in price despite their applicability. Buterin’s move was welcomed by a part of the crypto community for helping the tiny coins return to their true value after being exaggerated in recent times.

Binance under investigation for money laundering suspicions

On May 13, the digital currency community continued to receive more bad news after Binance, the world’s largest cryptocurrency exchange, was investigated by the US Department of Justice and the US Internal Revenue Service for suspected money laundering and violations of regulations. about tax. Being touched by the US authorities shows that the period of operation with little control of cryptocurrency exchanges has come to an end.

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Binance CEO Changpeng Zhao.

Binance was founded in “tax haven” Cayman and has an office in Singapore. Over the past time, it has been alleged that many funds related to criminal activities have gone through Binance to become clean money. Given its size, the amount that criminals launder through Binance is also the highest in the world.

The US authorities have also repeatedly expressed concern about the fact that cryptocurrency exchanges will make criminal activities hidden. Hackers, drug criminals can completely use them to go undetected. The investigation into Binance is said to be aimed at rooting out illegal activities in the cryptocurrency market, which are largely outside of this control.

What future for cryptocurrencies?

A series of blows have hit the cryptocurrency market, from the largest cap coins to the microcoins, severely. Bitcoin price has been falling and falling by a large margin in recent days. Although being traded at 50,614.7 USD/coin as of 16:31 Hanoi time, there is no guarantee that the storm has passed.

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Cryptocurrencies currently have a total market capitalization of $2.45 trillion, but their actual application is still controversial. The fact that new cryptocurrencies are easily created and increasingly occupy a large proportion makes people worry that a speculative trend has emerged.

Meanwhile, billionaire Elon Musk, who has played a huge role in the cryptocurrency boom over the past few months, seems to have turned his back on them after asserting: “Cryptocurrency is a good idea on many levels. degrees and we believe it has a promising future. However, that cannot come with an environmental cost.” Elon Musk wants to find a digital currency that uses less than 1% of the energy that Bitcoin uses, but it may not appear in the near future.

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Source : Genk