ELON MUSK AND BITCOIN - isn't it worrying to see how one person can influence an entire industry with a single tweet?

in Project HOPE2 months ago (edited)

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INTRODUCTION

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If you've been following Bitcoin's recent price movement, then you may end up being fooled by the recent rapid price jump which took place just 2 days ago. And today I would like to discuss this particular event and the main reason behind this price spike: Elon Musk.

Just a small reminder: on the 29th of January BTC went from $32k p all the way to above $38k. Volumes increased also rapidly and almost doubled in a short span of time. It happened in just a matter of few hours, bringing so much excitement and hope that the market broke out from the current consolidation period.

Initially, I was also very optimistic, not knowing the real reasons behind such a pump. Reasons which most of you may be already aware of.

IMAGINE HAVING THAT MUCH POWER AND INFLUENCE...

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obraz.pngImagine having so much power and so much influence, that your single tweet could cause another wave of FOMO (fear of missing out) or panic sell.

I often wonder: how would it feel to be such a person.

How would that feel, to be ELON MUSK?

(I believe that there is no need to introduce this name to anyone, as there are not many people who would ever be as well known as he is).

How does it feel for one person to be able to create such a "pump and dump" on a massive scale by simply tweeting the word "bitcoin"?

CAN ONE TWEET MOVE ENTIRE MARKET?

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On 29th January 2021, Elon Musk changed his Twitter bio to #bitcoin and moments later entire market went crazy, with demand bringing the price of bitcoin up by something around 16-17% within just a matter of hours. Demand literally exploded and initially I couldn't figure out the reason behind it.

It's worth mentioning that just several weeks ago his other tweets seem to push the price of BTC above $20k levels. After all - on Dec 20, he tweeted "Bitcoin is my safe word" and it seems to give another kick to the market.

MY QUESTION

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MY QUESTION IS: does it worry anyone here, that one person has such a huge influence over the entire industry and can impact price so greatly with just a single tweet?

I'm fully aware, that people praise Elon Musk and many are excited to see him being part of this industry. Especially while knowing that he seems to believe in crypto and is advocating for it.

However .... doesn't it concern and worry you, that in the world of decentralization (blockchain) one person has so much centralized influence? I'm very curious, as it does bother me a little bit and it's hard not to feel uneasy, knowing that my invested money depend so greatly on one entity.

We all seem to be happy with it so far, simply because that powerful entity is supporting our cause and seem to see Bitcoin as a great store of value. However, would we still be so happy and open-minded if things would be the other way around? If someone with such power and influence would actually try to hurt the crypto market?

I often wonder.

SHARE YOUR VIEW AND EARN 50K UPVOTE

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I would love to learn what you think about this and I will reward all valuable comments with 50k SP upvote.

CHECK OUT MY RECENT POSTS

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Drop a comment below first. And then, check out my recent post from 3 days ago only (link below):

I always appreciate valuable feedback and I give extra attention to support those, who are willing to invest their own time to read and comment on my posts:

obraz.pngHow do you see BITCOIN - AN INVESTMENT OR WEALTH PROTECTION AGAINST INFLATION?

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Yours, Piotr
@project.hope founder

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While not having as much influence as Musk we've constantly seen a negative spin on btc. Jamie "Bitcoin's A Fraud" Dimon, Noriel Roubini, Jamie "Bitcoin Will Never Trade Against USD" Dimon, Christine "Bitcoin Is Funny Business" Legard, Jamie "I Will Fire Any Employee That Buys Bitcoin" Dimon for small starters.

Yes, it's highly concerning what this world has turned into and how transparent the fraud and corruption in the financial sector is now a verifiable fact.

It's been a rigged system for sometime and the greedy have gotten fat, lazy and sloppy, becoming increasingly vulnerable regardless of how much ill gotten gain they have been siphoning from retail investors and targeted companies.

Max Keiser stated that "Tesla Is A Meme" rationalizing how Tesla could have a market cap larger than the combined US auto industry. I think Elon Musk brilliantly understands the weakness of our current financial system with negative interest rates, rampant fraud, unfathomable debt derivatives and nothing to back it.

Unfortunately the system is all fake and it's only time until the house of cards fall and the current system dies a slow lingering death, but fortunately we have the ability to play them as a collective by using the predatory tools that they've used for the past 20 years against them.

 2 months ago 

Dear @bitshares101

Late thank you for your valuable feedback. And allow me to wish you to have a great weekend :)

ps. Upvoted your comment with 50k SP already.
Cheers, Piotr

 2 months ago 

hi again @bitshares101

I've just posted new article about Elon Musk and Tesla. Perhaps you will find it interesting and worth your time. I surely would enjoy reading your feedback:
https://steemit.com/hive-175254/@crypto.piotr/elon-musk-and-tesla-the-blessing-of-a-threat-for-bitcoin-and-crypto-space

Cheers, Piotr

Exactly - understand the game and profit from that understanding. We cannot change the "rules", but we can figure them out.

BTC is a game token ;-) especially since futures were created.

I'm not surprised actually. He did the same thing with Doge and look how that went.

When you're the richest man in the world, every body would want to allign their money where you could potentially put yours

Of course I think I would go with you @belemo

 2 months ago 

hi again @belemo

I've just posted new article about Elon Musk and Tesla. Perhaps you will find it interesting and worth your time. I surely would enjoy reading your feedback:
https://steemit.com/hive-175254/@crypto.piotr/elon-musk-and-tesla-the-blessing-of-a-threat-for-bitcoin-and-crypto-space

Cheers, Piotr

Hello @crypto.piotr:

It does not surprise me, how many people get carried away by what a well-known person says.In this case I want to make it clear that the trending topics, and the people who have a lot of influence be a reference to move the big markets, in this case bitcoin and altcoins .

I particularly see it As a person who generate a lot of trust and that is why many people follow him.I understand that this trust they generate Makes your followers and people in general follow by what they say and the actions they take.

And I think it's a smart move to be guided by what people with more knowledge do.Leaders are role models and it is a principle that every entrepreneur should take.In the world of writing and bloggers it is known what we should follow the example of who else knows.At least that is how I have thought since I have learned about blogging and the investment world.

It is also important to take into account the great responsibility that these people have,Well, you can easily move or boost the market or just the opposite, with just a simple publication,here we see as one the word genre was very noisy and the market moved tremendously.

 2 months ago 

Dear @reinaldoverdu

Late thank you for your valuable feedback. And allow me to wish you to have a great weekend :)

ps. Upvoted your comment with 50k SP already.
Cheers, Piotr

 2 months ago 

hi again @reinaldoverdu

I've just posted new article about Elon Musk and Tesla. Perhaps you will find it interesting and worth your time. I surely would enjoy reading your feedback:
https://steemit.com/hive-175254/@crypto.piotr/elon-musk-and-tesla-the-blessing-of-a-threat-for-bitcoin-and-crypto-space

Cheers, Piotr

Hello @crypto.piotr

I really share your concern.
It is difficult to understand that a person with the economic power of Elon Musk, with only one publication, can influence the crypto market, but at the same time we can assume that the fact of being considered the richest man in the world, has a lot to do.
Recently yesterday he was in an interview at Clubhouse, where he made the following statement regarding Bitcoin :

"I'm a supporter. I'm late to the party, but I'm a supporter."
In addition to mentioning, the increased acceptance of cryptocurrency in the financial world.

Now he asked me:
How will this comment from Elon Musk about Bitcoin affect the market?
How was his move yesterday?

It is very disturbing to give answers to these questions or at least many of us can assume an answer that causes us even more anxiety.

Best regards.

 2 months ago 

Dear @janettyanez

Late thank you for your valuable feedback. And allow me to wish you to have a great weekend :)

ps. Upvoted your comment with 50k SP already.
Cheers, Piotr

 2 months ago 

hi again @janettyanez

I've just posted new article about Elon Musk and Tesla. Perhaps you will find it interesting and worth your time. I surely would enjoy reading your feedback:
https://steemit.com/hive-175254/@crypto.piotr/elon-musk-and-tesla-the-blessing-of-a-threat-for-bitcoin-and-crypto-space

Cheers, Piotr

While Elon Musk can move whatever market he comments on in a short period of time, the longer term trend for Bitcoin is positive. The reach of Bitcoin is now closer to mainstream in the past two years than ever. PayPal, Square, Mass Mutual – all have contributed to the rise in the price of BTC. It will be interesting to see what the next couple of months bring. Thus far we've been able to stay in the $30,000 -$34,000 range pretty consistently. If that range can continue I see potential for a rise to $50,000 happening in 2021. The key for the average person is to ask , "Am I trading or investing in Bitcoin?" If you're trading, don't get caught on the wrong side of the price swing or you'll be very unhappy. If you're investing, add on the dips and repeated support levels in the $30,000 range.

I agree with your comment about if people are "trading or investing". It would seem reasonable that there would be at least four types of players:
1.-Large institutionals that trade
2.- Large institutionals that invest in order to protect from potential inflation
3.- Fractional BTC owners that invest in the long term
4.- Fractional BtC owners that want to trade in a day to day basis (either because they are learning or want a get rich quick scheme)

Would you agree?

Yes! I would agree with your assessment.

 2 months ago 

hi again @davidgutre

I've just posted new article about Elon Musk and Tesla. Perhaps you will find it interesting and worth your time. I surely would enjoy reading your feedback:
https://steemit.com/hive-175254/@crypto.piotr/elon-musk-and-tesla-the-blessing-of-a-threat-for-bitcoin-and-crypto-space

Cheers, Piotr

Thanks! If I could be tagged I would greatly appreciate it to notice your posts (which are AAA level!)

 2 months ago 

Dear @tsharpaphi

Late thank you for your valuable feedback. And allow me to wish you to have a great weekend :)

ps. Upvoted your comment with 50k SP already.
Cheers, Piotr

 2 months ago 

hi again @tsharpaphi

I've just posted new article about Elon Musk and Tesla. Perhaps you will find it interesting and worth your time. I surely would enjoy reading your feedback:
https://steemit.com/hive-175254/@crypto.piotr/elon-musk-and-tesla-the-blessing-of-a-threat-for-bitcoin-and-crypto-space

Cheers, Piotr

Hello @crypto.piotr,
About Elon Musk, I have followed his work and progress in the area of ​​technology and engineering (which is my area), and I think he has achieved some good achievements.

However I feel discomfort, when the fundamental trends of the foreign exchange market or the crypto-asset market, move without sense due to a Tweet like the one Elon Musk did on 01-29-21.

I see this as fashion trends, it is enough for someone to wear an "article" or dress and immediately it causes a revolution in fashion, without any sense of logic.

In most cases these turn out to be strategically planned moves and bring total chaos as a consequence. Musk's past tweet may simply be a preamble to a bigger movement in a few days.

 2 months ago 

Dear @tocho2

Late thank you for your valuable feedback. And allow me to wish you to have a great weekend :)

ps. Upvoted your comment with 50k SP already.
Cheers, Piotr

Thanks friend..!

Elon musk is a big name. but he influencing the price all alone is really strange to me.

First doge coin and then bitcoin went up again...!!!

the reason being Elon using #bitcoin.

I think whales of the Industry took advantage to the tweets and it isn't a single person influencing the price all alone.

It is just like a trust to people.
for example , a random hike in the price won't attract people that much but when a big name tweets or talk about a currency and then the currency goes up , people start to believe that this pump might last long and then people put their money in.

It's all manipulation at the end of the day and while many profit from the scenario there are poor people who got harm in this pump thing.

 2 months ago 

Thanks for sharing your thoughts with me @kamranrkploy

ps. Upvoted your comment with 50k SP already.

Enjoy your weekend buddy,
Cheers, Piotr

 2 months ago 

hi again @kamranrkploy

I've just posted new article about Elon Musk and Tesla. Perhaps you will find it interesting and worth your time. I surely would enjoy reading your feedback:
https://steemit.com/hive-175254/@crypto.piotr/elon-musk-and-tesla-the-blessing-of-a-threat-for-bitcoin-and-crypto-space

Cheers, Piotr

Perhaps he was helping Michael Saylor get out of his trade. Anyway, he should prepare for a massive dumpage in btc this week.

Why would the community assume a massive dumpage? There is no evidence whatsoever that BTC will be dumped.
1.- It is the "mother" of all blockchains
2.- BTC, unlike most newly created cryptos, does offer a real value proposition.
3.- There is no new information or mayoer players dumping, unless you are reffering to fraction owners..

Maybe I'm missin something or need to update on certain events, can you expand on the reason for massive dumpage?

thanks

 2 months ago 

Thanks for dropping by @gungho

Is that what you expect? massive dumpage in upcoming days?

ps. consider accepting my friend request on Discord. I've tried to contact you but I'm not sue how to do that.

Cheers,
Piotr

Lol.... I believe Elon Musk is actually using the power of influence and it's really great to see that he also has some special interest in cryptos unlike some other rich and influential people out there.

Thanks for sharing this great post with love from @hardaeborla ❤️💕

He has created value for himself and wherever he will go, his value will follow. We cannot stop it, he has earned that value and it will benefit him and can use whatever way he wants. If he is supporting any platform or currency, people will think there is value in that.

Though, it will happen only momentary.

If there is a value which he claims, nothing harm in doing that, people will benefit from it.

And if people don't find the value, which he claims, people will soon find out and go back to where the actual value is. The price will come back to its position.

If he would be doing it more often, and people don't find value in it, they will not be befooled again. Two-way sword.

We must keep the focus on our value which we re creating. The value will attract fiances not mere illusion of value.

 2 months ago 

Two-way sword.

Indeed @knowledgefruit. Thanks for this comment.

 2 months ago 

hi again @knowledgefruit

I've just posted new article about Elon Musk and Tesla. Perhaps you will find it interesting and worth your time. I surely would enjoy reading your feedback:
https://steemit.com/hive-175254/@crypto.piotr/elon-musk-and-tesla-the-blessing-of-a-threat-for-bitcoin-and-crypto-space

Cheers, Piotr

Exactly, basically bitcoin and crypto needs personal endorsement to actually do really well. I'm glad Elon is taking the initiative

Greetings friend @crypto.piotr. It is certainly worrying that a single person can influence the price of an asset so much, while cryptocurrencies need the support of influential people it is dangerous for the industry that a single comment can create euphoria or sink it in the market.

Musk is the best entrepreneur of the last 20 years, an exceptional visionary. Many are influenced by his words and I am not surprised what happened.

 2 months ago 

It's hard not to agree with you @stefano.massari

Things like this is normal. When you have a voice, anything you say or do, people will always believe and trust your judgement compared to a common man. Elon statement alone makes dog coin looks bullish. Just see how people were buying Dog coin, what a voice.

I wish someday we have the voice to influence the world someday.

It's quite unfortunate that a tweet can change the value of BTC.... But I think why it's so is that in most cases.. people tends to make the rich people their idols as well as mentors. This therefore makes them do whatever their idols might have done in order to get to their level.....

However, Elon has an influence on the entire society at large.

 2 months ago 

Thanks for sharing your thoughts with me @ezeemmanuel

Enjoy your weekend buddy,
Cheers, Piotr

Hello friend @crypto.piotr
A few days ago, just passed what you comment, I was wondering co.o was this possible, that six letters in a twitt moved hundreds of millions of dollars and raised so much the price of something that is presumed decentralized.
It is really worrying. I think he could through this maneuver find a good way to get his hands on a few million more.
It's easy for him to buy a billion in BTC and then make it go up 20% in price, from a tweet, and make a nice profit in a few hours or minutes.
The game of the rich is always planned. It is complicated to fully understand all this.

The Famous guy in the world!

Hello @crypo.piotr I will love to first talk about having an influence that will move a great space, I see Elon as a person who has built up his reputation and we all should be bothered about building a good reputable name for ourselves.

Secondly, I also feel very bothered that in a decentralized world that we are all clamouring for a person can easily dictate what happens to the market, that means the moment he decides to take his mind off cryptocurrency, everything could possibly go sour.

 2 months ago 

hi again @gbenga

I've just posted new article about Elon Musk and Tesla. Perhaps you will find it interesting and worth your time. I surely would enjoy reading your feedback:
https://steemit.com/hive-175254/@crypto.piotr/elon-musk-and-tesla-the-blessing-of-a-threat-for-bitcoin-and-crypto-space

Cheers, Piotr

It hurts the concept of decentralization of cryptocurrency. People like him can control the value of bitcoin and dogecoin. But we can't do anything but flow with this stream.

The truth is that one man influence over an entire industry is a thing of concern because it can be of a thing of joy and at the same time can cause pain...

I feel there is little to what we can do to the influence this man have on the industry but the crypto Industry can do more to maintain his trust and support. So I will conclude my comment by saying that the Industry should try and keep working hard to win and maintain the trust of men that have higher influence in the world to their side.

 2 months ago 

hi again @great-a

I've just posted new article about Elon Musk and Tesla. Perhaps you will find it interesting and worth your time. I surely would enjoy reading your feedback:
https://steemit.com/hive-175254/@crypto.piotr/elon-musk-and-tesla-the-blessing-of-a-threat-for-bitcoin-and-crypto-space

Cheers, Piotr

With a day or week time horizon, his comments and those like him matter.

With a Year or Decade time horizon, his comments and those like him mean a lot less.

This is the same reason I say that the crypto market is highly volatile. Now the question is; do we need that kind of volatility in the crypto space where one person can alter or manipulate the price of a particular cryptocurrency? Imagine if Elon had tweeted something negative about it, the price might drop. I think, at this point, we should advocate for crypto adoption, where everyone will become crypto-literate to be able to grow crypto organically and not FOMOing.

 2 months ago 

hi again @samminator

I've just posted new article about Elon Musk and Tesla. Perhaps you will find it interesting and worth your time. I surely would enjoy reading your feedback:
https://steemit.com/hive-175254/@crypto.piotr/elon-musk-and-tesla-the-blessing-of-a-threat-for-bitcoin-and-crypto-space

Cheers, Piotr

hi dear buddy @crypto.piotr
Elon is the richest man in the world and the most popular, people adore and idolize him, this type of behavior has happened a lot in the past, I remember when michael jackson spoke against the sony label and harmed it or when steve jobs said something and apple shares rise, people do what their idols do, that's why they hire Cristiano Ronaldo to use a product because millions are sure to buy it.

This is bad of course that yes, someone or a group could influence the market of course, the solution is that every day people understand more people wake up and stop being sheep.

blessing

Since a few months ago I have serious doubts about the issue of "centralization", since its inception the blockchain was created to avoid centralization but for quite some time it has been centralizing a good example of this is how a person can affect the market just with a twitter or on the other hand the owners of large mining estates that have power over the industry, from my point of view we are far from overcoming centralization for now.

 2 months ago 

hi again @trabajosdelsiglo

I've just posted new article about Elon Musk and Tesla. Perhaps you will find it interesting and worth your time. I surely would enjoy reading your feedback:
https://steemit.com/hive-175254/@crypto.piotr/elon-musk-and-tesla-the-blessing-of-a-threat-for-bitcoin-and-crypto-space

Cheers, Piotr

It is worrysome that one person can influence so much the markets, but let me dig deeper:
What worries me, is that more and more, communities are looking for such informal leaders for advise, which is not necessarily a bad thing, the bad part comes, when the analytical thinking process that every person should have and execute, doesnt happen. This has been partially the reason why so many fake news have been widespread, because more often people are not willing to discern information or to critically analyze it.

In almost every industry we have such informal leaders that are shaping the minds and guiding decisions of consumers.

 2 months ago 

Thanks for sharing your thoughts with me @davidgutre

Enjoy your weekend buddy,
Cheers, Piotr

Same 👍👍

Empathically I would like to first of all talk about investment sentiment... Individual value might soon run obsolete one day if another person rises to a greater value pedestal than the other. Now what I mean is this, people see Elon Musk as a final voice in the crypto space and as such whatever postulations or audible contemplation he makes become a driving force for many to trade.

For whatever reason the price of BTC boom at just a single tweet from a man, it means that what used to be called a Decentralized system has all of a sudden become centralized system and trust me, without sentiment this is a pending threat.

While Elon gets BTC on the hill, we should pay attention to ourselves and develop us. How I desire that through me STEEM can be taken to the moon.

@crypto.piotr, in my own opinion, I think Elon musk has already made a name. He is an influencer, so any industry he steps into, there is a leap.
Imagine his networth and the investment he would have made on BTC.
Meanwhile, the leap BTC took that day adazed me, I was wondering what could have caused such an escalating leap.
I believe BTC will still have more leaps in the future, it is still under manipulation.
One of a good investment to make is on cryptos and BTC is the chief.
Thanks for sharing this piece.
Best regards

 2 months ago 

hi again @talktofaith

I've just posted new article about Elon Musk and Tesla. Perhaps you will find it interesting and worth your time. I surely would enjoy reading your feedback:
https://steemit.com/hive-175254/@crypto.piotr/elon-musk-and-tesla-the-blessing-of-a-threat-for-bitcoin-and-crypto-space

Cheers, Piotr

Alright @crypto.piotr, I'll check it out.
Thanks.

Excellent is the word that comes to mind when I see your work

Hello @crypto.piotr

This is similar to what happened a few years ago when John McAfee was able to pump whatever coin he wanted with just a tweet.

I myself will not feel comfortable knowing that my funds are pegged with just a single person or entity. I think it weakens the decentralization that we are so proud of.
However, I'm still fascinated with the fact that bitcoin has been able to draw the attention of such a big-name as Elon Musk

 2 months ago 

hi again @qsyal

I've just posted new article about Elon Musk and Tesla. Perhaps you will find it interesting and worth your time. I surely would enjoy reading your feedback:
https://steemit.com/hive-175254/@crypto.piotr/elon-musk-and-tesla-the-blessing-of-a-threat-for-bitcoin-and-crypto-space

Cheers, Piotr

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