Tesla CEO Now Sets His Eyes on DeFi, But The Elon Effect on Price Is Absent
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). BCH -18.22% Bitcoin Cash / USD BCHUSD $ 1,296.22
-$236.17-18.22% Volume 9.74 b Change -$236.17 Open $1,296.22 Circulating 18.74 m Market Cap 24.29 b 1 d Positive Momentum for Ethereum Continues with Another $60 Million in Inflows: CoinShares Report 6 d Ethereum Fork ETC Trading 12% Higher on Coinbase, CAKE Wicks Down Over 13.5% on Binance 1 w Bitcoin and Ether Record The Largest Inflows Since February: CoinShares Report
“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 DOGE -12.77% Dogecoin / USD DOGEUSD $ 0.43
-$0.06-12.77% Volume 11.66 b Change -$0.06 Open $0.43 Circulating 129.57 b Market Cap 56.09 b 14 h USD Index is Crashing; It Has Been Historically Bullish for Bitcoin 1 d Palantir says Bitcoin Is 'Definitely on the Table' to be Put on the Balance Sheet 1 d Tesla's Elon Musk Considers Accepting Dogecoin As Payment For Cars in New Twitter Poll 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. BTC -13.17% Bitcoin / USD BTCUSD $ 49,689.62
-$6,544.12-13.17% Volume 90.31 b Change -$6,544.12 Open $49,689.62 Circulating 18.71 m Market Cap 929.62 b 7 h Almost 90% Respondents Interested in their Insurance Products Having Links with BTC: Survey 9 h Bitcoin Car to Race at the 105th Indianapolis 500 to Support BTC Awareness and Open-Source Development 10 h CME Group Sees 'Strong Adoption' of Micro Bitcoin Futures
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.