Bitcoin hit a record nearly two days in a row after Tesla, Elon Musk’s electric vehicle company, announced the purchase of a $ 1.5 billion cryptocurrency, or 45.4 billion. Not long ago, Bitcoin surged more than $ 48,000 or 1.4 million before dropping to $ 45,960 or 1.3 million, still about 25% higher than last week.
The Bitcoin spurt comes as some investors use the Tesla move as a sign that Bitcoin will become the main financial asset.However, some criticisms oppose Tesla, an eco-electric vehicle company. Instead, invest in a currency that uses enormous amounts of energy like this.
Tesla: Sells carbon credits to buy Bitcoin, which requires as much energy (not always Green energy) as a small country to mine… https://t.co/IFTPxPOOoe— Mike Butcher (@mikebutcher) February 8, 2021
Today, the production of digital currencies such as Bitcoin, also known as “Bitcoin mining”, requires computer hardware that consumes a lot of power and processing power. Cryptocurrencies such as Bitcoin are known to emerge on enormous energy. It has been calculated that the amount of energy used to generate Bitcoin is greater than Argentina’s full-year energy consumption. Which is a number according to the University of Cambridge analysis
Bitcoin is a form of digital currency that is traded over a computer network.Bitcoin is operated through hundreds of thousands of millions of hardware networks around the world. Within the network, computers or other devices are shared to process and store transactions at this point. Tesla explains that the investment it makes is because the company wants to increase the return on cash flow in its accounts. It also plans to accept payments for electric cars in Bitcoin in the future.
The move sparked interest in the market. Shares of companies that provide bitcoin trading platforms and crypto mining technology or cryptocurrency All rebounded Not just in the US But companies in China, South Korea and Australia all have benefited. This includes major computer chip companies such as SK Hynix, whose share value is clearly increasing.
Overall, cryptocurrencies are up 62% in value this year, up from a 300% increase in 2020, in part because investors are looking for alternative assets. At a time when deposit rates in many countries were at record low levels.
Bitcoin has gained the attention of large investment firms. But central banks of many countries remain skeptical and skeptical of cryptocurrencies. In October, Bank of England Governor Andrew Bailey issued a warning about the use of Bitcoin, stating that it was a non-payment method. “Real value” is different from cash or gold.
In addition to some investors who are particularly wary of Bitcoin price fluctuations, crypto believers are driven by Tesla’s investments, raising confidence that crypto is the future. Several central banks and regulators have begun loosening measures against cryptocurrencies. For example in China Where regulators began accepting the issuance of their own digital currencies For use in daily life.
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