Elon Musk tweeted on Feb 20, 2021, “Money is just data that allows us to avoid the inconvenience of barter. That data, like all data, is subject to latency & error. The system will evolve to that which minimizes both. That said, BTC & ETH do seem high lol”.
While a myriad of factors likely play into the drop in BTC and other cryptocurrencies’ prices, Elon Musk’s impact on BTC can not be ignored. On the one hand, he believes in bitcoin’s future. Tesla did buy $1.5 billion dollars worth of bitcoin. On the other hand, short-term volatility on cryptocurrencies happens constantly, creating market inefficiencies.
BTC dropped 19% in 16 hours today from $58,414 to $47,393. Part of this drop can be attributed to Elon Musk. Another factor is the forced liquidations on many exchanges, according to tracker Bybt.com. About $3.52 billion of cryptocurrency were liquidated in the past 12 hours.
Traders sometimes overleverage their...
The $50,000 record pushes BTC up to 69% gains for the year. This comes on the heels of more institutional investing by big corporations such as BNY Mellon, Mastercard, Twitter, and Apple that we already discussed.
Another corporation, MicroStrategy, is planning on purchasing more bitcoin. The business intelligence company has 71,079 bitcoin currently, valued around $3.5 billion. The company wants to add another $690 million worth of bitcoin. To raise that capital, they will be using senior convertible notes that would be able to be converted to cash or shares.
A leading technology and financial services firm dedicated to Bitcoin, NYDIG* is hoping to add a bitcoin ETF to the New York Stock Exchange. It is yet another company seeking SEC approval. The full Form S-1 filing can be found here.
*NYDIG is the Bitcoin subsidiary of Stone Ridge, a $10 billion alternative asset manager.
Roman Regelman, CEO of asset servicing and head of digital at BNY Mellon--the oldest bank in the U.S. announced on February 11th that "BNY Mellon is proud to be the first global bank to announce plans to provide an integrated service for digital assets."
On February 10th, Mastercard also announced it would begin to support cryptocurrencies this year.
Even Twitter is considering offering cryptocurrencies as payment to employees. Twitter CEO Jack Dorsey, who also owns the digital processing company Square, has invested heavily in Bitcoin. Square has about $50 billion in BTC as of October.
Today, Bitcoin payment service provider Bitpay is also on Apple Wallet and Apple Pay allowing users to spend Bitcoin. BitPay plans to add support for Google Pay and Samsung Pay by March's end.
Honestly, do you really need more convincing that Bitcoin is going to change the world?
Image Credits to CoinGenius