It doesn’t take a lot of imagination to see Jack Dorsey as a self-proclaimed prophet. The multi-billionaire and founder of Twitter walks past the camera with a hairless head, now enjoys wearing tie-dye shirts, and strokes his long, frizzy beard exactly nine times before a decisive phrase. “My hope,” said Dorsey after an hour of discussing digital currencies, “is that Bitcoin will create world peace.”
For now, times are anything but peaceful in the world of virtual currency: by mid-April, Bitcoin had passed the $ 60,000 mark, and then the exchange rate collapsed. When digital currency even crashed below $ 30,000 earlier this week, some observers warned of a crypto ice age. Investors watched all the more carefully when a virtual billionaire reunion was scheduled. Of all the people, Bitcon apologists Elon Musk and Jack Dorsey were invited. The big question: Would your words alone still give Bitcoin a blow?
In the end, a few words are enough to push the digital currency up. Not that of world peace, but that of Tesla founder Elon Musk: not only his electric car company owns Bitcoin, but his space company Space X as well – and even himself. soon accept again as payment method. The tone has been set, crypto traders have bought – and the price of digital currency has peaked at over $ 32,000.
One sentence and everyone reacts
Over the past few months, it’s often Musk’s words that have drastically increased the price of Bitcoin, both up and down. “There are just a lot of private investors in this market who mainly watch its rates,” says stock strategist Andreas Lipkow of direct bank Comdirect. Currency? Personal perspectives instead of fundamental factors.
Because at first glance, they look anything but good: Financial politicians, regulators, and central bankers around the world want to release their own digital currencies and are therefore attacking non-government digital currencies. Some Chinese provinces now prohibit local businessmen from connecting their computer parks to the Bitcoin network. In Brussels, the European Commission did not propose to ban anonymous crypto accounts until earlier this week. Securities like this are what make many private investors nervous.
However, some crypto experts are doing nothing: if players in the crypto world were to adhere more strictly to money laundering rules, it should only make digital currency more attractive. “Big investors in particular then have a much greater certainty that they are not dealing with money launderers on the other side,” explains stock market expert Lipkow.
The fact that China is driving many key players in the Bitcoin network out of the country could also make Bitcoin more environmentally friendly. Experts have repeatedly criticized the amount of energy consumed even with a single Bitcoin transfer. Many Bitcoin players in China let their computers run primarily on coal-fired electricity, which has resulted in a poor environmental record. If part of the Bitcoin infrastructure were to move to other countries with cleaner electricity, digital currency would be a bit more environmentally friendly.
Bitcoin as security in times of inflation? Doesn’t seem to work
As if all that wasn’t enough, Tesla boss Elon Musk even tried to give some sort of verbal assurance: “I could pump, but I don’t throw,” Musk rhymed in English. In more or less German: Take the course? In an emergency, he would. Sell a lot of Bitcoin? Definitely no.
But by no means all the experts have something to say about the optimism of the founder of Tesla. While many buyers had loaded Bitcoin into their deposit as protection against rising prices, Bitcoin failed precisely in this mission. Although inflation rates on both sides of the Atlantic have increased significantly, the Bitcoin rate has collapsed since mid-May.
It’s also unclear which of the thousands of digital currencies on the internet will win the race. Bitcoin has been the most popular digital currency for years, but Tesla boss Elon Musk is also passionate about a completely different digital currency called Dogecoin. Two American computer scientists once started money as a joke, but could it become a global currency? “Maybe the more ironic variation is the more likely in the end,” Musk says. And takes a long sip from his water bottle.