Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.
Top Stories This Week
Already losing dominance in the crypto rankings as altcoins were gaining strength, things went from bad to worse for Bitcoin this week as Elon Musk made a shock announcement.
On Twitter, the billionaire CEO declared that purchases of Tesla cars using BTC had been stopped amid concerns about the cryptocurrency’s impact on the environment.
Although Musk said Tesla had no plans to sell any more of its Bitcoin, he confirmed that the company is looking at other cryptocurrencies that are much less reliant on energy.
BTC went into freefall following the sudden statement, which appeared to take traders by surprise. It tumbled as low as $46,980.02 and has struggled to remain above $50,000 since.
Unsurprisingly, Musk’s statement was met with a barrage of fury from the crypto community.
Given that this blockchain’s energy use is nothing new, many were confused as to what’s changed since Tesla invested $1.5 billion in Bitcoin just a few months ago.
Some have accused the CEO of engaging in a “pump and dump” scam by manipulating the market with his 280-character missives. Others insisted that miners primarily use renewable energy — but data suggests this might be a slight embellishment. While 76% of miners use renewable energy some of the time, the University of Cambridge estimates just 39% of total power consumed by proof-of-work cryptocurrencies is eco-friendly.
Barstool Sports founder David Portnoy also ripped into Musk, accusing him of “playing with people’s futures and their fortunes.”
Others pointed out that proof-of-work is crucial for Bitcoin, and attempted to reassure investors that the cryptocurrency is proving resilient to criticism.
Saifedean Ammous, author of The Bitcoin Standard: The Decentralized Alternative to Central Banking, also didn’t mince his words, telling Musk: “Unless you’ve also switched your rockets and battery manufacturing to ‘more sustainable energy’ you’re going to look like a clueless big hypocrite here. The world needs sound money far more than it needs your rockets & government-subsidized electric cars.”
ETH inevitably got caught up in the crypto market tanking. But prior to the Tesla drama unfolding, it was stealing the show by reaching a slew of astronomical milestones.
The world’s second-biggest cryptocurrency surged as high as $4,362.35 — briefly propelling its market cap above $500 billion for the very first time. This came hot on the heels of ETH entering unprecedented territory by surpassing the $4,000 mark on Monday.
Ether’s parabolic surge gave it a valuation that was bigger than the likes of Visa and JPMorgan too.
While any lasting impact from Tesla’s announcement remains to be seen, analysts believe that ETH hitting $5,000 is still a matter of if, not when.
Musk’s fingerprints haven’t just been on Bitcoin this week. It seems like a lifetime ago that he hosted Saturday Night Live — and sent DOGE’s price tumbling after the eccentric entrepreneur described the joke cryptocurrency as a “hustle.”
Dogecoin lost 40% of its value in a 24-hour period from last Saturday to Sunday, hitting lows of $0.43. Whereas some analysts had been expecting that the altcoin would rally after the broadcast, the opposite ended up being true.
However, warnings of a devastating crash reminiscent of XRP’s fall in 2018 have been unfounded… at least for now. In recent days, DOGE has headed back up above $0.50 on…