One of crypto’s biggest weaknesses is its notorious volatility. This discourages many institutional and retail investors who are used to calmer movements in traditional markets. Unfortunately, some famous billionaires like Tesla and SpaceX CEO Elon Musk don’t seem to take crypto seriously. As you know, prices are constantly changing wildly due to Musk’s comments on cryptocurrencies, putting crypto investors in a spiral of concern.
Vitalik Buterin, the wonder kid of crypto known for his work on the Ethereum network, recently; He said that cryptocurrencies will no longer be the prisoner of the power of Elon Musk’s tweets that move the market, and that Elon Musk is not malicious. Buterin also briefly commented on the ETH 2.00 update.
Crypto “Will Build An Immune System Over Time”
This week, 27-year-old Ethereum co-founder Buterin; He emphasized that although cryptocurrencies are currently at the mercy of Musk’s tweets, the developing industry thinks that “over time will form an immune system” to this issue. He also added:
“Elon Musk tweets are something the crypto space has faced for the first time in literally last year and this year. I think it makes sense to expect a little crazy. But I think the markets will get used to it. Elon won’t have that effect forever. ”
Currently, there is not a single person on Twitter who has been directing cryptocurrency issues more than Elon Musk. Calling himself “Technoking of Tesla”, Musk is known for sharing Bitcoin and the joke currency Dogecoin.
On Thursday, February 4th this year, a Dogecoin tweet from Musk resulted in a 40% price increase in half an hour. What was the tweet that set the market in motion? It was published with the title of “I am welcome”; A photocopied version of Musk’s face and DOGE’s avatar in a famous cut from The Lion King movie.
Shortly before, Musk tweeted that Tesla would no longer accept Bitcoin payments due to the environmental impact of mining the crypto asset, and close to $ 370 billion was removed from the crypto markets.
Buterin Does Not Think Musk’s Love for Dogecoin Was Malicious
Buterin also talked about Elon Musk’s sincere interest in the Dogecoin cryptocurrency, inspired by the internet meme, and stated that it only demonstrates Musk’s humanity and is not intended to mislead investors.
“He’s a hundred-billionaire running Tesla and SpaceX, and all that doesn’t change the fact that he’s a human after all, and people are excited about dog money. I don’t think Elon was malicious in any of these. ”
However, Elon Musk’s comeback from Bitcoin could turn the scales in favor of the second largest blockchain, Ethereum. Currently, both Bitcoin and Ethereum use the energy-consuming PoW consensus algorithm. However, the Ethereum network is expected to soon move to a less energy-consuming consensus mechanism, namely PoS.
According to Ethereum researchers, ETH 2.0 will consume 99.95% less energy than the current Ethereum blockchain. During the interview, Buterin also stated that he is “very confident” that the current high Ethereum transaction costs will decrease significantly after the upgrade.