Once again, the Elon Musk influence is being felt worldwide.
This time, his Twitter activity caused a dramatic market shift among cryptocurrencies.
The whole crypto market tumbled after Wednesday’s tweet announcing that Tesla wouldn’t accept bitcoin in payment for its cars after having purchased $1.5 billion worth of bitcoin in February.
Musk explained it was due to his concern over the vast amount of energy used by bitcoin:
“(Tesla is) concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”
Cardano is seen as a cleaner option and a Forbes story on Thursday reported:
“In a Thursday morning note, Investing.com senior analyst Jesse Cohen noted Musk said he would look for bitcoin alternatives that consume less than 1% of its energy per transaction and pointed to Cardano and Ripple’s XRP as two cryptocurrencies with more sustainable environmental costs than bitcoin thanks to their less-intensive mining and transaction networks.”
Cardano founder Charles Hoskinson, also an Ethereum cofounder, responded to Musk Thursday, tweeting: “Are we finally going to have the Cardano conversation? Come to my farm… Got sweet tea and minidonkeys.”
While Cardano was spared, Ethereum dropped more than 12 percent, and Dogecoin had fallen 20 percent in the 24 hours following Musk’s tweet — and 34 percent in the past week.
At around the time of Musk’s tweet Wednesday, the value of the cryptocurrency market was about $2.43 trillion, according Coinmarketcap.com data. A few hours later, the market capitalization had dropped to around $2.06 trillion.
Bitcoin was at $48,635 early afternoon on Thursday, dipping below the $50,000 mark for the first time since April 24.
Bitcoin is still up 400% in the past 12 months.