Bitcoin Down and Back-Up as Elon Musk Rattles the Cage

May 18, 2021, by Cris
Elon Musk said yesterday that he does not see Bitcoin as being fully decentralized, due to a large majority of mining being controlled by a small number of people.
Bitcoin Elon Musk

The Tesla founder also backtracked on allowing crypto payments for his electrical cars.

The move to cancel the proposed payment option has upset crypto fans after Musk’s previous support was one of the key fundamentals of the year’s rally. Tesla’s $1.5bn investment in the coin is still safe, but Musk added fuel to the fire over the weekend with the centralized comments.

Musk tweeted:

“Bitcoin is actually highly centralized, with supermajority controlled by handful of big mining (aka hashing) companies. A single coal mine in Xinjiang flooded, almost killing miners, and Bitcoin hash rate dropped 35%. Sound “decentralized” to you?”.

In another tweet, Musk hit back at critics of his monetary beliefs:

“Hey cryptocurrency “experts”, ever heard of PayPal? It’s possible … maybe … that I know (more) than you realize about how money works”.

Bitcoin’s 2021 rally has stalled in recent weeks, with the coin seeing a low under $42,500 in the last week. Litecoin has also seen a pullback from the recent record highs to trade at $287 on Monday.

How Is Litecoin Faring?

It can be argued that Litecoin is the better investment with the current pullback. BTC soared above its 2017 record highs of $20,000, to trade above $60k. LTC on the other hand, nudged above the 2017 highs to trade above $400. The recent bull market in BTC has started to spread outwards and institutional investors have been hovering around the altcoin in recent weeks, with new investment products being launched in LTC.

Litecoin could correct further towards the $200 level with increased BTC selling and that would be a 50% discount on the recent all-time highs.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.