Elon Musk Exposed Bitcoin’s Weakness, Says Miami Mayor Francis Suarez
According to Miami Mayor Francis Suarez, tech mogul and Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk highlighted an issue with Bitcoin (CRYPTO: BTC) which reduces its usefulness as a financial asset.
What happened: Suarez said In an interview with CNBC, Suarez said he was a “big fan of Elon Musk” but suggested that being able to move the price of Bitcoin from 10% to 20% with just one tweet was a problem.
He explained that this kind of price volatility shows that Bitcoin cannot be used as a hedge against fiat currency.
“When a person has the ability to tweet and skyrocket the price of a particular asset to that level – you know, 10-20% versus 1% or 2% or 3% …
You know, there’s volatility in everything, there’s commodity volatility, there’s dollar volatility but not that kind of volatility. Once it works with sufficient transaction volume and a lot more stability, I think it’s something that could definitely be a hedge against fiat currency, ”Suarez explained.
Why this is important: In mid-May, Elon Musk tweeted that his electric car manufacturing company Tesla would stop accepting Bitcoin as a payment method due to environmental concerns – later it was suggested by market watchers that he took this step under pressure from institutional investors.
Bitcoin took a hit after the announcement, and Musk also later kicked the already lying coin, to suggest that Tesla could sell its Bitcoin holdings acquired as part of a $ 1.5 billion investment made at the beginning of February.
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