Recent tweets from Elon Musk have partially rendered sending Bitcoin (BTC) and other cryptocurrencies plunging. This caused Vietnamese investors to lose and decrease their support in the future of digital currencies.
Vietnamese crypto trader, Thien Tuan, a 28-year-old Vietnamese from the northern province of Mong Cai; has seen his VND30 million ($1,300) cryptocurrency investment fall by nearly 40 percent just in the last few days.
Tuan had joined the crypto market in early April with no prior investment experience. Half of his savings are now in XRP. Which has fallen 36 percent since mid-April, and Dogecoin has lost half its value in two weeks.
He mentioned that,
“Some of my friends have advised me to exit the market and look for other reliable assets like gold. I’m worried my losses will rise to 80-90 percent in the coming weeks.”
On numerous Facebook groups of which he is a member; hundreds of individuals exhibit similar anxieties about Bitcoin, Dogecoin, and other cryptocurrencies. This is after their prices dived due to the comments made by Musk and other reasons.
In March, Musk stated that clients could buy Tesla cars using bitcoin. But, on May 13, he announced in a tweet the company had barred the plan. Bitcoin lost 12 percent almost immediately.
In another Twitter comment on May 17, Musk appeared to imply Tesla could sell its Bitcoin holdings. It sent the token down another 8 percent.
The world’s most prominent coin has lost 47 percent from its peak in mid-April, while other cryptocurrencies too are down by double digits.
Other factors adding to the falls are China’s further cracking down on digital currencies and Binance Holdings, the largest cryptocurrency exchange investigated by U.S. authorities for money laundering and tax offenses.
Tran Cuong, 22, of Hanoi, invested $700 in Bitcoin and Dogecoin, and states “I have lost nearly $500 due to Elon Musk’s tweets.”
Vietnamese Crypto Miners Concerned On Bitcoins Price Dive
Viet Hung of the southern province of Dong Nai only started mining a month ago and was expecting to recoup his investment by the end of the year.
“Now that the market has plunged, I don’t know whether to continue mining or sell the equipment and cut my losses,” he says.
Minh Huy, a mining rig seller in HCMC, says many prospective buyers have suspended purchase plans to watch how the market moves before making a final decision.
Some of these deals are potentially worth billions of dong (VND1 billion = $43,500).
“The plunging market not only hurts investors but also hardware suppliers,” Huy says.
Hoang Bao of Hanoi, who has years of experience in coin mining, says he has yet to see people sell off equipment but feared that if prices keep falling, the market could soon turn “chaotic.”
“The worst-case scenario is that rigs will be left to gather dust like last time, but this time it will be on a much bigger scale,” he says, referring to the 2018 Bitcoin selloff.
Bitcoin and other cryptocurrencies are not recognized as legitimate means of payment in Vietnam. The State Bank of Vietnam has warned that owning, trading and using cryptocurrencies are risky and not protected by law.
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