{"id":248552,"date":"2021-05-13T11:28:16","date_gmt":"2021-05-13T08:28:16","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-reasons-why-bitcoin-doesnt-care-about-elon-musk\/"},"modified":"2021-05-13T11:28:16","modified_gmt":"2021-05-13T08:28:16","slug":"3-reasons-why-bitcoin-doesnt-care-about-elon-musk","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-bitcoin-doesnt-care-about-elon-musk\/","title":{"rendered":"# 3 reasons why Bitcoin doesn&#8217;t care about Elon Musk"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a34cc1a264c7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a34cc1a264c7\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-bitcoin-doesnt-care-about-elon-musk\/#Proof-of-Work_doesnt_care\" >Proof-of-Work doesn&#8217;t care<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-bitcoin-doesnt-care-about-elon-musk\/#Price_trends_dont_care\" >Price trends don&#8217;t care<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-bitcoin-doesnt-care-about-elon-musk\/#Bitcoin_energy_%E2%80%9Cconsumption%E2%80%9D_doesnt_care\" >Bitcoin energy &#8220;consumption&#8221; doesn&#8217;t care<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># 3 reasons why Bitcoin doesn&#8217;t care about Elon Musk <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Bitcoin (BTC) dived 17% when Tesla CEO Elon Musk criticized its energy consumption \u2014 but it&#8217;s already bouncing back.<\/p>\n<p>On May 13, fresh from its dip to $45,60, BTC\/USD is trading above $51,000, having regained over half its lost ground.\u00a0<\/p>\n<p>With the drama still spreading, Cointelegraph considers why, on a fundamental level, Bitcoin is ultimately resilient to the actions of a single user \u2014 no matter how influential he or she is.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Proof-of-Work_doesnt_care\"><\/span>Proof-of-Work doesn&#8217;t care<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin&#8217;s Proof-of-Work (PoW) algorithm rewards both miners and investors over time because their years of work makes the network stronger.<\/p>\n<p>The longer Bitcoin continues, the less likely it is to succumb to attack or see its participants leave the network for a different cryptocurrency.\u00a0<\/p>\n<p>This is precisely why Bitcoin continues to be the cryptocurrency of choice with competition \u2014 as many argue, no altcoin can &#8220;do Bitcoin&#8221; like Bitcoin.\u00a0<\/p>\n<p>When it comes to Musk, however, proof-of-work is signifcant for another reason. Just because one prominent investor changes his mind on Bitcoin&#8217;s merits and the price drops, miners have no added incentive to quit the network or cash out.<\/p>\n<p>This aspect of &#8220;network effect&#8221; means that Musk ultimately provides Bitcoin with good, rather than bad publicity \u2014 as even price shows, his words and actions do not change what Bitcoin is or what it is capable of.<\/p>\n<p>&#8220;Why is proof-of-work crucial for bitcoin? Because a valid hash (PoW) is how P2P nodes know that a block is valid, without needing a server or trusted third party,&#8221; PlanB, creator of the stock-to-flow family of Bitcoin price models, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/100trillionUSD\/status\/1392632189104185352\">commented<\/a> on the phenomenon.<\/p>\n<blockquote><p>&#8220;Bitcoin is dead without PoW!&#8221;<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/100trillionUSD\/status\/1392632189104185352\/photo\/1\"><\/a><\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/0788d252-abeb-4e52-ab36-d9459178976c.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin 7-day average hash rate 1-year chart. Source: Blockchain<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Price_trends_dont_care\"><\/span>Price trends don&#8217;t care<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite its abrupt dive after Musk&#8217;s words, Bitcoin&#8217;s recent price action speaks more to its resilience to criticism than its susceptibility.\u00a0<\/p>\n<p>In the event, BTC\/USD spent a mere two hours in decline before reversing and holding higher levels. Not just that, but the dip also fits with regular price behavior seen this year and did not even violate any longer-term price trends.<\/p>\n<p>A particularly important level which has characterized the 2020-2021 bull run has been the 21-week exponential\u00a0 moving average (EMA). Analysts have said that this level would dictate the price floor during dips \u2014 it even held during the previous bull run peak in 2017.<\/p>\n<p>This time, Musk likewise failed to topple the indicator, and the brief wick to $45,650 was extinguished when it met the 21EMA on the way down.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/0d26194c-8196-44ff-a735-bd9159a729fc.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 1-week candle chart (Bitstamp) with 21-week exponential moving average. Source: Tradingview<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_energy_%E2%80%9Cconsumption%E2%80%9D_doesnt_care\"><\/span>Bitcoin energy &#8220;consumption&#8221; doesn&#8217;t care<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As ever with Bitcoin, it pays to zoom out.<\/p>\n<p>Once the dust settles on Musk&#8217;s individual energy criticism, the wider &#8220;debate&#8221; on how eco-friendly Bitcoin is will continue in his wake. Most of the common accusations, however, have been long debunked as short sighted and lacking evidence.<\/p>\n<p>Just last week, Michael Saylor, CEO of major Bitcoin hodler MicroStrategy, gave a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=0N6zl3BkCnw&amp;feature=youtu.be\">public interview<\/a> in which he reinforced the lack of merit inhererent in claims that Bitcoin is &#8220;bad&#8221; for the environment.<\/p>\n<p>Responding to Musk, he called Tesla&#8217;s decision to stop accepting Bitcoin for payments &#8220;ironic.&#8221;<\/p>\n<p>&#8220;Ironic because no incremental energy is used in a bitcoin transaction,&#8221; he <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/michael_saylor\/status\/1392621211302105091\">wrote<\/a> on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>. <\/p>\n<blockquote><p>&#8220;The energy is used to secure the crypto-asset network, and the net impact on fossil fuel consumption over time will be negative, all things considered.&#8221;<\/p><\/blockquote>\n<p>Expanding one&#8217;s time horizon is thus essential to understanding why Bitcoin is worthwhile. As Saifedean Ammous, author of popular book, &#8220;The Bitcoin Standard,&#8221; often mentions, having a &#8220;low time preference&#8221; allows a BTC investor to understand that rejecting sound money for reasons such as the environment ends in more energy wasted on unsound alternatives.<\/p>\n<p>This time, Ammous did not mince his words.<\/p>\n<p>&#8220;Unless you&#8217;ve also switched your rockets and battery manufacturing to &#8216;more sustainable energy&#8217; you&#8217;re going to look like a clueless big hypocrite here,&#8221; he <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/saifedean\/status\/1392607286917488646\">tweeted<\/a>, alluding to Musk&#8217;s other company, SpaceX.<\/p>\n<blockquote><p>&#8220;The world needs sound money far more than it needs your rockets &amp; government-subsidized electric cars.&#8221;<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/3-reasons-why-bitcoin-doesn-t-care-about-elon-musk\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 3 reasons why Bitcoin doesn&#8217;t care about Elon Musk &#8221; Bitcoin (BTC) dived 17% when Tesla CEO Elon Musk criticized its energy consumption \u2014 but it&#8217;s already bouncing back. On May 13, fresh from its dip to $45,60, BTC\/USD is trading above $51,000, having regained over half its lost ground.\u00a0 With the drama still&#8230;<\/p>\n","protected":false},"author":1,"featured_media":248553,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDUvMDBjMjFlZTgtOWRiMC00MDczLWE2N2MtMGM4YWMyOTcxZmY2LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74989,74937,75578,39394,73785,36402],"class_list":["post-248552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-mining","tag-bitcoin-price","tag-proof-of-work","tag-elon-musk","tag-markets","tag-tesla"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/248552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=248552"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/248552\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/248553"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=248552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=248552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=248552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}