Bitcoin reached the milestone of a $ 1 trillion market capitalization last week. However, it appears that a tweet from Tesla CEO Elon Musk, The viral tech blog a warning from Treasury Secretary Janet Yellen, and comments from Microsoft co-founder Bill Gates are causing its value to drop rapidly.
The popular cryptocurrency fell to just over $ 47,000 on Tuesday, after breaking the $ 58,000 mark on Sunday afternoon. Musk tweeted on Saturday that BTC and ETH seem very high, referring to Bitcoin and the digital currency Ethereum. Musk's tweet was part of a response to a tweet by Peter Schiff, chief market strategist at brokerage Euro Pacific Capital, The viral tech blog about the value of Bitcoin against the gold-backed currency.
In an interview with Bloomberg, The viral tech blog Gates gave his take on Bitcoin and the idea that a tweet from Musk can affect him so dramatically.
I am not bullish on Bitcoin
Gates also raised concerns about Bitcoin's massive power use, similar to a point Yellen made during the DealBook conference on Monday. he said. If you have less money than Elon, The viral tech blog you should probably be careful. I have commented how the amount of energy used for transactions is staggering.
I don't think Bitcoin ... is widely used as a transaction mechanism, he said, according to CNBC. To the extent that it is used, I am afraid it is often for illicit financing. It is an extremely inefficient way to conduct transactions, The viral tech blog and the amount of energy that is consumed in processing those transactions are staggering.
Bitcoin and other cryptocurrencies like Dogecoin require great computing power for people to be able to transact. These heavy computer calculations, The viral tech blog also known as mining, require a large amount of energy, The viral tech blog more than the country of Argentina.
For most of 2020, Bitcoin rallied from its low of just $ 5,000 in April to surpass $ 29,000 by the end of the year.
