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While Elon Musk disavows Bitcoin, MicroStrategy buys the dip

Photo of: Joseph Stone
by Joseph Stone

The environment first. Tesla is giving up on Bitcoin. And that’s a mistake for BTC whale MicroStrategy, which is shelling out $15 million to acquire more crypto.

“We are concerned about the rapid increase in the use of fossil fuels for bitcoin mining and transactions, particularly coal, which has the worst emissions of any fuel,” writes Elon Musk.

These statements accompanied the announcement that Bitcoin would be suspended as a means of payment. The sudden decision triggered a drop in the value of the cryptocurrency below the $50,000 mark. Tesla and its leader are the targets of strong criticism within the crypto ecosystem.

For some, Musk’s argument doesn’t hold water. That’s the opinion of Michael Saylor, the CEO of MicroStrategy, a Bitcoin whale. Electricity consumption was increasing “by 40% in the same period that the network was growing by 100% in assets, which means that energy efficiency has improved significantly over that period,” the executive argues.

This is not the only argument for promoting Bitcoin, Saylor further considers.

“Bitcoin offers 8 billion people a superior technology to secure their human rights to property, as well as a solution to the global problem of inflation and currency devaluation that creates more than $10 trillion in economic damage per year,” the boss defends.

“Isn’t the fossil fuel mix second rate? “, the Bitcoin whale pretends to question. That’s clearly not the view of Tesla and its CEO, whose policy is being called treasonous.

The manufacturer does not intend to break with cryptocurrencies, however. It is thus thinking about adopting other, more energy-efficient digital currencies. The value of Dogecoin is also benefiting from these ongoing reflections.

What about Bitcoin? Is a profound evolution of the network in favor of a new consensus model more relevant than ever, as advocated by the founder of Ripple and XRP? The debate is not here for Michael Saylor.

On May 13, the publisher announced a new purchase of Bitcoin for $15 million. The company now holds an additional 271 BTC. In total, its capital reaches 91,850 Bitcoins, acquired for $2.241 billion. With an average Bitcoin price of $24,400, MicroStrategy remains very profitable. The price of BTC is close to $50K.