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Crypto Supporting Elon Musk Calls Fiat a Scam While Still Not Accepting Bitcoin

Last Updated October 3, 2023 11:57 AM
Teuta Franjkovic
Last Updated October 3, 2023 11:57 AM

Key Takeaways

  • Elon Musk stated on X that “fiat currency” is a scam.
  • His post has sparked significant attention within the community.
  • Musk’s comment highlights the ongoing discussion about the role of crypto in challenging traditional money systems.
  • Bitcoin proponents interpret Musk’s statement as an endorsement for digital currencies.

In the midst of a big Bitcoin price increase to beyond $28,000, Elon Musk, the CEO of X (previously Twitter), posted  on his social media platform branding fiat currency a “scam that’s so normalized that we don’t even realize it’s a scam anymore”.

According to recent data, after hovering around $27,000 for a week, Bitcoin surged past the $28,000 resistance barrier on Sunday, September 30, 2023, reaching its highest price in over a month. Musk’s critique of government-controlled currencies coincided with this surge. As a result, the price of Bitcoin has risen further and currently sits at around $28,400.

BTC Approval or Just an Act of Defiance?

While Musk has previously influenced cryptocurrency markets, the rapid and significant impact of his recent remarks on Bitcoin’s price may seem unlikely. However, considering his well-known support for cryptocurrencies and active participation in the market, it’s plausible that Bitcoin’s upsurge drove his post.

Yet, the timing of his essay and Bitcoin’s price movement could be separate responses to different issues related to central bank-backed currencies.

Bitcoin’s recent price surge has multiple contributing factors, including optimism surrounding upcoming spot Bitcoin exchange-traded funds (ETFs) by companies like BlackRock and Fidelity and last-minute government shutdown avoidance.

However, the BTC futures market, where leverage was building up , likely played a significant role in boosting prices. As Bitcoin surged from around $26,000 last week, it wiped out nearly $270 million in short bets, which were anticipating price declines, thereby adding extra momentum to the current rally.

Despite the wide range of forecasts given by Bitcoin price analysts, some have voiced hope for more bullish movement in the near future.

Michael van de Poppe, CEO of MN Trading, stated  that “Bitcoin back up to $28,000.”

“Might fully retrace, but the trend is clearly upwards. Every consolidation of bitcoin will be a period where altcoins are starting to follow the path of bitcoin. This quarter will be fun!” he noted.

As Poppe pointed out, the rise appears to have expanded to the larger cryptocurrency market, as numerous well-known coins have also experienced price increases.

According to Barron’s , the second-largest cryptocurrency, ether, increased by 3% to $1,730. Smaller altcoins and tokens also made gains, with Cardano rising 5% and Polygon rising 4%. Dogecoin and Shiba Inu both witnessed 2% gains in Memcoins, which is more of the same.

Potential Resumption of Bitcoin Payments by Tesla

Elon Musk declared  in 2021 that Tesla would stop accepting payments in Bitcoin owing to worries about the mining of this cryptocurrency.

However, he also left the door open for the prospect of resuming Bitcoin payments once mining becomes at least 50% more financially viable.

Now that a recent research has confirmed that Bitcoin mining currently relies on more than 50% sustainable energy sources, it becomes conceivable that Tesla may consider accepting Bitcoin payments again.

The Bitcoin market would benefit greatly from this. Tesla may also think about starting to accept Bitcoin payments again for various reasons.

First off, it would increase the pool of possible customers. Additionally, it would safeguard Tesla from inflation. The third benefit is that it would be a gesture of support for Bitcoin and the cryptocurrency industry. There are still some obstacles, such as making sure that customers feel secure utilizing Bitcoin as a form of payment.

In conclusion, Tesla’s assumption of a return to Bitcoin payments is a good step for the cryptocurrency sector and could have a big impact on the demand and price of Bitcoin and further legitimize this cryptocurrency as a means of payment.

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