After the crash that followed Elon Musk’s remarks about the environmental damage generated by Bitcoin, analysts are wondering if this is his final word. In this case, ARK Invest’s Cathie Wood hopes that Elon Musk will become a Bitcoin bull in the future again. Here are their reasons for believing it.
The controversy over Bitcoin’s environmental footprint is not new, as much of the mining is known to take place in locations with coal power. In particular, it would seem illogical for Tesla, a company that is committed to electric cars, to support such a thing. This is what likely led Tesla to stop accepting Bitcoin payments.
Expert Cathie Wood’s comments on what could happen to Bitcoin and Elon Musk in the future
Wood believes that Musk will fully return to supporting Bitcoin eventually. “Elon probably got some calls from institutions,” Wood said in an interview with CoinDesk. He also noted that BlackRock (BLK) is a large Tesla shareholder. According to Wood, BlackRock CEO Larry Fink focuses on climate change. Tesla’s European investors are also very in tune with climate issues.
Nevertheless, Wood believes that the demand for cryptocurrency mining can provide utilities with the cash needed to invest in renewable energy.. She sees environmental issues fade as the power grid transforms in the next few years.
Musk’s decision to accept Bitcoin was a watershed moment in considering it as a transaction instrument. But now that Tesla has halted its Bitcoin transactions with consumers, it is a victory for the bankers.
How this all turns out could be what pulls Bitcoin out of its recent trading range. If the volatility of transactions keeps Musk on the sidelines, Bitcoin could be in trouble.
But, if Wood’s views turn out to be correct, then Musk’s hesitation with Bitcoin is only temporary. For Elon Musk to buy and accept Bitcoin again at Tesla would be a great catalyst for the price of the cryptocurrency. It is difficult to predict how it will turn out, but traders can place their bets now.