BTC has Broken the $40,000 and It Has Nothing to Do with Elon Musk
Recently, Bitcoin has experienced a small apogee. BTC, the value of which has fluctuated for a month, finally reached a monthly high of $40,000. It seems that now BTC will stop falling, so it’s too early to buy the bottom.
Bitcoin has started to move up
In general, BTC can be called stable only at the initial stage. The most interesting thing is that the figure of Elon Musk, the” godfather ” of the crypt in the currency circle, once again came out of the shadows, saying that he can continue to support BTC in the future.
Musk said on Twitter that if BTC miners use reasonable (more than 50%) clean energy, Tesla will restart the BTC payment system. Many people believe that the large fluctuations of BTC in these rounds of 2021 are largely due to this.
Some even suspect that Musk is maliciously manipulating BTC. Magda Wierzycka, CEO of South African asset management company Sygnia, has publicly stated that Musk used his influence and that of Tesla to manipulate the price of BTC to buy low and sell high.
To be honest, as a capitalist in the field of science and technology, Musk’s words and deeds do have a big impact, and some of his actions can really affect Bitcoin. But Musk, thank God, has not yet achieved the ability to determine the direction of BTC with a single sentence. After all, BTC is too big even for the great Emperor of Mars. After all, Musk is just a passer – by in the history of BTC.
What really determines the direction of the value of BTC is the establishment of a consensus system and the attitude of different countries to the asset.
The United States is not targeting BTC at the G7 summit, which is very good news for BTC, although in fact, the current international policy towards BTC is not friendly. Support for a small country like El Salvador is actually negligible. Frankly, El Salvador’s statement of support for BTC is far less important than Musk’s attitude, but they all give way to CBDC.
Bitcoin Policy
Many countries are tightening their policies on Bitcoin. In addition to strengthening surveillance and introducing tax policies, some countries have begun to ban it entirely. In addition, the introduction of digital currencies by central banks of different countries is approaching, and there will probably be big problems about BTC, which does not have a country that can do this behind the scenes.
The currency system is an important part of any country. With the exception of some countries that do not have a full-fledged monetary system, no country would want its monetary system to be influenced by foreign currencies.
If a country launches its own central bank digital currency, it will definitely prioritize supporting its own CBDC. BTC is one of the biggest obstacles to the development of a central bank digital currency. It is possible that BTC will face political suppression. As they say: “Support only what is good for you, not what is right”. So, the main battle of the BTC is still ahead.
If the US explicitly supports BTC, it will have momentum for further development.
However, the attitude of the United States and BTC, after all, is only at an ambiguous stage and has not expressed clear support for the development. At best, institutional giants such as Musk have supported the development of BTC, and expressed their willingness to contribute to the improvement of the system. The support of these giants at this stage is really very useful for Bitcoin adoption, but over time this impact will become less and less. Especially with the introduction of digital currencies by central banks. If the United States continues to pursue an ambiguous policy, it cannot be excluded that other countries will behave aggressively towards the crypto.