Tesla CEO Elon Musk continues to get deeper and deeper into cryptocurrencies, having covered Doge, Bitcoin, NFT to now DeFi.
On Thursday, Musk took to Twitter to announce “Don’t defy DeFi.”
This obviously sent the Crypto Twitter (CT) into euphoria and, of course, to Musk’s comment section with their memes and shills.
“Replacing banks with code,” commented David Gokhshtein.
Arthur_0x of DeFinance Capital took this as an opportunity to propose adding support for fiat-backed cryptos as well. “Do allow us to pay for Tesla in stablecoins as well,” commented Arthur.
Bitcoin Fork or Doge?
Just yesterday, Musk announced that the electric car maker would
now be accepting Bitcoin as payment. Adding to this bullish news is the fact that any BTC received will be retained as Bitcoin and not converted to fiat currency.
The company's supporting documentation clarified that any crypto asset other than Bitcoin, name mentioning the forks BCH and BSV, isn’t accepted. “Our Bitcoin digital wallet is not configured to detect or receive digital assets other than Bitcoin,” the company said.
Internet entrepreneur Kim Dotcom argued that Bitcoin transactions involve high costs compared to its fork
Bitcoin Cash (BCH). [coin_stats_table symbol="BCH"]
“Try and buy a Soda with Bitcoin,” Dotcom
tweeted while sharing that Bitcoin’s median fee is $8.92 while BitcoinCash’s median fee is a mere $0.001.
“Over half of all cash payments worldwide are under $10. BCH is serving the mass market, not just the 1%,” he said. “That’s why Bitcoin Cash.”
Musk
responded to Dotcom’s argument with “Fair point.”
Musk also
responded with the emoji of a pair of eyes to one Twitter user, suggesting that Dogecoin [coin_stats_table symbol="DOGE"] would rather be the best choice with “fast speeds and low fees,” making for ”an actual spendable cryptocurrency.”
Not Effect on Price
Musk's announcement sent the
price of Bitcoin higher above $57,000, only to lose all the gains the same day. Today the BTC price fell even lower to $50,350, down 18.5% from March 13 all-time high shy of just $62,000. [coin_stats_table symbol="BTC"]
As we started to see with
DOGE, Musk’s tweets about crypto, which has been increasing in number, have been losing their effect on prices, or they soon get reversed as in Bitcoin’s case.
As for the DeFi market, the prices have been declining since yesterday in tandem with Bitcoin and that continues today with DeFi coins down 10% to 20%.
This week, the DeFi sector has wiped out about $15 billion from its market cap, which currently stands at $82.8 billion, as per CoinGecko.
bitcoinexchangeguide.com
25 March 2021 12:43, UTC