This year in history, Bitcoin reached its highest value ever as such during the lockdown the bitcoin wasn`t performing well. But, after it the bitcoin steadily starts climbing the chart even though many countries like India were planning to ban crypto, people were investing in it. And when Elon Musk (Owner of Tesla Motors) announced on 9 Feb 2021, that Tesla is going to invest $1.95 billion, the result was that the bitcoin reached its highest value in history, approximately $63,729 (according to data from Coin Metrics) on April 13, 2021. Now, approximately 2 weeks ago China banned cryptocurrency means you cannot trade anything with Bitcoin which initially decreases the value of Bitcoin to about 9%. And also, Elon Musk in his tweet said that Tesla will no longer accept Bitcoin for car purchase, due to which it goes to 30–40% and reached its lowest value since Feb 2020. it also affected the other crypto`s associated with Bitcoin like Ethereum.
He said that “Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”
He added that “Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment.”
He said that “Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin energy/transaction.”
Musk also shared the charts of energy consumption of past few months on his Twitter account:
But Elon Musk said that “He hasn`t destroyed crypto as much as China did.” So let`s see, “Why China banned cryptocurrency?”
China`s three industry bodies (National Internet Finance Association of China, China Banking Association, and the Payment and Clearing Association of China) stated in a joint statement that:
“Recently, cryptocurrency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order.” They have not banned the holding of cryptocurrency but, warned the individuals from the use of crypto trading. The industry bodies also said that cryptocurrencies’ value can easily be manipulated and trading contracts are not protected by Chinese law.
That`s what China explained the reason for thrashing Bitcoin. The current value of Bitcoin is $37,320 after crashing and still falling. My prediction and the current record say that Bitcoin in the future will retain its position up to some extent but, it will not reach its current highest value of $63,729, at least not in the next 5 years (Expected).
Thanks for Reading. Take Care. 😷