Tech

Elon Musk tweets and gives crypto markets growing pains

Last week when Elon musk tweeted that he spoke with the Doge developer team about how to make the part more efficient, the impact was predictable: he sent Dogecoin towards the Moon. It was just the latest in a series of statements from Musk that sent the play on a roller coaster go viral in recent weeks.

And yet, it surprised Doge’s core development team, says Michi Lumin, a Colorado-based developer who helps maintain the cryptocurrency. Yes, billionaire Tesla and SpaceX has been “spitting ideas” with the team for quite some time, Lumin says, including on how to make Dogecoin more efficient. They welcomed his contribution. But he says the intense spotlight on Musk’s recent round of Doge and Bitcoin boosting tweets has been a little stressful, garnering scorn from critics who view Doge as just a joke and send the market into convulsions. Their play may have been largely based on the hype, but they planned to keep it low-key.

“We are not Eloncoin,” he said. Except, it seems, every time Musk decides to tweet.

Musk’s influence isn’t limited to Doge. Last week, Musk also tweeted that due to climate issues Tesla would not accept Bitcoin in exchange for cars, three months later. he first said that he would. Of course Elon. As WIRED has it written about numerous timeBitcoin uses enough energy to power a mid-sized country, and a significant portion (though vigorously contested) comes from fossil fuels like coal. The big mystery is why this was not a problem for Musk a few months ago. Maybe it’s a green marketing initiative or some sort of regulatory preemption. Or maybe it’s just a troll meant to make us all contemplate the value of things for the sake of tautology.

Whatever the reason, Musk creates and destroys small fortunes of 280 characters at a time. “It sounds very scary and deeply irrational,” says Jill Carlson, blockchain investor at Slow Ventures. When Musk first announced that Tesla would mistake Bitcoin for cars – and the company was buying it for $ 1.5 billion – he sent value skyrocketing. When it receded last week, the news wiped $ 300 billion from the market within minutes. His subsequent denunciations over the weekend, including a Sunday tweet This suggested that Tesla may have already offloaded its Bitcoin holdings, sending the price even lower. (He clarified later they hadn’t sold.)

Meanwhile, his periodic tweets mentioning Dogecoin, usually heavier on jokes than substance, send this market into fits of exuberance – although last week he took to Saturday Night Live and called it ” a stampede, ”so he dropped, until he brought it back to life with the greening tweet.

“I am not comfortable with the fact that a person or a small entity is able to manipulate the market. I guess that’s where we are right now in the crypto realm, ”says Lumin, developer Doge. “It’s not great, for sure.”

Maybe it’s five dimensional chess, or maybe it’s just fantasy. After all, Doge is a slightly odd choice to defend as an eco-friendly alternative. It currently runs on a similar and power-hungry system to Bitcoin’s, and there are plenty of cryptocurrency alternatives that already use cleaner methods, none of which are worth mentioning on Musk’s Twitter feed. Over the weekend he suggested that if his Dogecoin plans didn’t work, he would create a cryptocurrency from scratch on his own. “He appears to be primarily driven by his own entertainment on the Dogecoin front,” Carlson says. “He’s going to wade through these big issues and then sets it up so he can come in as a hero.”



Elon Musk tweets and gives crypto markets growing pains

Source link Elon Musk tweets and gives crypto markets growing pains

Back to top button