As per Miami mayor Francis Suarez, tech tycoon and Tesla Inc. (TSLA) CEO magnate Elon Musk emphasized a Bitcoin (BTC) problem that decreases its benefit as a financial asset.
Through a CNBC interview, Mayor Suarez stated that he’s a “big fan of Elon Musk”; but, hinted that he move Bitcoin’s price by 10% to 20% with a single tweet a problem.
He revealed that this type of price volatility explains that Bitcoin can’t be utilized as a hedge versus fiat currency.
Suarez elaborated that,
“When one person can make one tweet and spiral the price of a particular asset at that level — you know, 10%-20% as opposed to 1% or 2% or 3%… You know everything is volatile, commodities are volatile, there’s volatility in dollars but not that kind of volatility. Once that works itself out with adequately transactional volume and much more balance, then I think that’s something that certainly could be a hedge against a fiat currency.”
Why It’s Important
In mid-May, Elon Musk tweeted that Tesla would accept Bitcoin as payment due to ecological matters. Later, it was advised by market observers that he took this action as an outcome of influence from institutional investors.
The most prominent coin took a hit after the disclosure. Musk also later kicked the already-lying coin, hinting that Tesla may dump its Bitcoin holdings acquired in a $1.5 billion investment made in early February.
Bitcoin dived after a cryptic tweet from Elon Musk indicating a potential split with the most prominent coin, the newest post from the billionaire, to buffet the token’s price.
The coin sank as much as 2.8 percent and was trading at about US$37,850. The drop bent a steadying in the largest virtual currency and the crypto sector this week in general after a rout in May.
In his newest tweet, Mr. Musk wrote “#Bitcoin” with a broken heart emoji.
The tycoon seemed to always have disturbed bitcoin prices with his tweets, including deciding to suspend payments using the token to Tesla over environmental concerns.
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