Just a few hours after Elon Musk's tweet announced the cessation of accepting Bitcoin payments when buying a Tesla car, hundreds of billions of dollars of crypto market cap were wiped out from the market.
According to Smartglobies.com data, by the time Musk sent out his tweet, the total market capitalization of the crypto market was about $ 2,430 billion. But about 2 hours later, the market capitalization of the whole market was only about 2.064 billion USD after evaporating about 365.85 billion USD
However, in a tweet last night, Musk said that Tesla "is concerned about the growing use of fossil fuels in Bitcoin mining and trading, especially coal, which is the emitting fuel. the worst of them all . "
While Bitcoin suffered a steep price drop of 12% and at times falls below $ 50,000, its lowest level since April 24 to date. However, despite this deep drop, the price of Bitcoin has risen 400% in the past 12 months.
Other cryptocurrencies also fell upright last night on varying degrees. Currently most of these cryptocurrencies have recovered slightly from the deep drop last night.
Bitcoin is not issued or guaranteed by any central bank. Instead, it is maintained by a network of users known as "miners." These miners' computers will run complex algorithms that consume a lot of energy to mine or trade bitcoins. Currently, the energy consumption of the Bitcoin mining network is already equivalent to the annual usage of a number of countries.
From last year, Bitcoin started gaining traction when companies like Tesla and Square announced the adoption of Bitcoin as a means of payment, and major financial institutions also joined the cryptocurrency arena. Major banks like Goldman Sachs and Morgan Stanley are also looking to give their wealthy clients access to this investment.
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