Elon Musk tweets crypto support, helping Bitcoin price stabilize at $ 37,600 – fr

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Elon Musk tweets crypto support, helping Bitcoin price stabilize at $ 37,600 – fr


Elon Musk appeared to show renewed support for cryptocurrencies on Saturday, and the Dogefather’s supposed boost may have helped stabilize a sharp drop in Bitcoin’s value.

In a Twitter thread published early Saturday morning, the billionaire tech mogul said that “any sufficiently advanced magic is indistinguishable from technology.”

Its legion of followers interpreted it as a reference to the cryptocurrency, whose values ​​have fallen sharply since Musk tweeted about the huge environmental impact of their mining.

When someone asked what the CEO of Tesla thought about people “who are mad at you because of crypto,” Musk tweeted that “the real battle is between fiat and crypto. Overall, I support the latter.

A fiat currency is defined as being backed by the government that issued it, rather than something that is inherently valuable like gold.

All of the major currencies in the world, from the US dollar to the Japanese yen, are fiat currency.

After Musk’s post, the price of Bitcoin edged up to $ 38,150 before dropping back down to $ 37,600 late Saturday night.

The price is still down more than 30% in May after an avalanche of bad news.

Tesla has announced that it will no longer accept currency as a form of payment, and Chinese officials have said they will no longer accept it into their financial systems.

Elon Musk, Tesla’s founding billionaire and outspoken crypto booster, tweeted his support for crypto on ‘fiat’ currencies

Elon Musk appeared to show renewed support for cryptocurrencies in a tweet on Saturday, claiming he supports them against ‘fiat’ currencies

Bitcoin's value fell as low as $ 32,000 earlier this week before recouping some of its losses

Bitcoin’s value fell as low as $ 32,000 earlier this week before recouping some of its losses

In a Twitter thread Thursday night, Musk argued that cryptocurrency could be environmentally friendly in the future, provided the bigger “miners” reveal how much renewable energy they use.

“It * can * be done over time, but the recent extreme growth in energy use could not have been achieved so quickly with renewables. This question is easily resolved if the top 10 hashing organizations just publish audited renewable energy numbers and not, ”he said.

He went on to say that Bitcoin mining was starting to use more energy than smaller countries.

“Bitcoin (aka mining) hash energy consumption is starting to exceed that of mid-sized countries.

In a Twitter thread Thursday night, Musk argued that cryptocurrency could be environmentally friendly in the future, provided the bigger 'miners' reveal how much renewable energy they are using. .

In a Twitter thread Thursday night, Musk argued that cryptocurrency could be environmentally friendly in the future, provided the bigger “miners” reveal how much renewable energy they use.

“Almost impossible for small hashes to succeed without these massive economies of scale. ”

Bitcoin mining sees new ‘coins’ generated by extremely sophisticated computers solving complex mathematical problems. While no physical extraction is involved and no actual coins are minted, the technology involved uses huge amounts of electricity, which in turn burns large amounts of fossil fuels.

In a report released Thursday, the Treasury outlined President Joe Biden’s new compliance proposals, including mandatory tax reporting for transactions of $ 10,000 or more for Bitcoin and its rival cryptocurrencies.

Explaining the proposal, a Treasury Department spokesperson said, “Cryptocurrency already poses a significant detection problem by facilitating illegal activities at large, including tax evasion.

This is why the president’s proposal includes additional resources for the IRS to deal with the growth of cryptoassets.

Musk was a cryptocurrency champion, but earlier this month he lowered the price by expressing concern for the good for the environment.

Musk was a cryptocurrency champion, but earlier this month he lowered the price by expressing concern for the good for the environment.

In the context of the new financial account reporting regime, cryptocurrencies and cryptoasset exchange accounts and payment service accounts accepting cryptocurrencies would be covered. Additionally, as with cash transactions, businesses that receive cryptoassets with a fair market value of over $ 10,000 would also be reported.

The measure, which is expected to take effect in 2023 if passed, would require companies to report crypto transactions above the threshold to the IRS, as they are currently required to do with cash, in a bid to fight against tax evasion and money laundering.

According to CNBC, financial analysts believe that the Security and Exchange Commission – a financial body separate from the Treasury Department – will likely be given jurisdiction over cryptocurrency by Congress.

Bitcoin fell 6% on the news to just under $ 40,000, a day after Wednesday’s turbulent trading that saw the coin climb 30% in a matter of hours, with backing from Tesla CEO Elon Musk, fueling the rebound.

Analysts believe Thursday’s proposal could boost the value of the cryptocurrency in the long run, granting real legitimacy to Bitcoin, Ether and their rivals, as well as making transactions using currencies more secure.

Prior to the IRS announcement on Thursday, Bitcoin had previously regained lost ground to trade above $ 40,000 on Thursday morning.

The rise in value came a day after a sharp sell-off over concerns over tighter regulations in China and unease over the extent of borrowing in the cryptocurrency world.

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