In the previous 24 hours, the cryptocurrency market has dropped over 10%, today on 27th November.
Cryptocurrency has had a difficult time with sudden price changes after a year of earnings and high records. Investors began leaving mining equipment as China announced new limits, causing Bitcoin and other top cryptocurrencies to drop substantially in stock prices.
Following the recent Tesla collapse, the company has decided to accept Bitcoin as payment for its products, although China has adhered to initial coin offerings, ban exchanges, and advised against speculative trading.
After declaring all cryptocurrency transactions unlawful, China’s central bank, the People’s Bank of China, has successfully outlawed digital currencies.
The judgment has already influenced the worldwide cryptocurrency market. China’s crypto crackdown comes only days after Musk’s surprise declaration.
Cryptocurrency Prices by Market Cap: Source – Coinmarketcap.com
Musk’s decision is a complete 180-degree turn for Tesla, which first accepted Bitcoin as payment in February 2021.
Until Tesla purchased $ 1.5 billion in Bitcoin shares, the market price of both crypto and Tesla rose.
Tesla, however, has removed this option from customers due to the impact on the Bitcoin mining environment – the complex process of creating the new digital currency.
“We are concerned about the fast expansion in fossil fuels in Bitcoin miners and trade locations, especially coal, which is more filthy than any other fuel,” the wealthy businessman added.
In a tweet, Musk reiterated his confidence that bitcoin “has a potential future,” but added that it “could not come at a large cost to the environment.”
Tesla’s decision reverberated throughout the market, with certain digital tokens falling in value. Musk has been a long-time supporter of cryptocurrencies, and his decision was well-received.
Due to the unregulated nature of the government and its banks, cryptocurrency is seen as one of the most common and cheapest ways to transfer money.
Some saw Tesla’s decision, which was also publicized by Musk, as a minor step forward in the concept that cryptos can be used to pay for physical goods.
Bitcoin was not the only cryptocurrency to suffer a drop in value as a result of the first findings; the majority of the top ten fell in value.
Dogecoin, which began as a joke in 2012 before witnessing its stock surge, has also fallen in value, while the market price of Solana has increased by more than 8%.
Tesla’s announcement still shocks the market, despite the fact that PayPal, Mastercard, and Facebook have all expressed support for cryptocurrencies.