The fall of Bitcoin has been going on for several weeks now, for several reasons: Elon Musk’s statement and the Chinese government’s measures against the spread of cryptocurrencies.
Let's take a closer look, May 19 news agency Reuters announced the decision of the Chinese government to tighten measures for payments between companies and banks using cryptocurrencies.
China devalued Bitcoin
China has not encouraged payments in cryptocurrencies before, but this time everything has become even more serious. Three federal banks in the Middle Kingdom have announced that they refuse to make payments in virtual money, and, moreover, insist that it does not represent any real value.
After this statement, in just 1 day, Bitcoin lost another 15% of value, which amounted to 31K€; such a price has not been seen since February 2021. Thus, in just a month, on two statements, Bitcoin is quoted 42% lower.
Statement by Elon Musk
As you already understood from the above, China is not the only reason for the fall of “crypto”. Elon Musk's only tweet, made on May 13, brought it down 10 points last week.
A little history
If we go back to the beginning of this year, in January 2021 Tesla bought an impressive 1.5 billion $ worth of Bitcoin (that's 8% of the company's entire liquidity). Elon Musk also said that an electric car can be purchased for cryptocurrency. This caused a predictable surge in the price of virtual money.
But “the bastard didn’t dance for long”; in May, Elon Musk said that Bitcoin production pollutes the environment and does not correspond to Tesla’s environmentally friendly strategy. So, he refused to accept payments “crypto”, which led to a collapse in the value of Bitcoin.
"Dirty" Bitcoin
How does Bitcoin pollute the environment, you ask? For those who don’t know, cryptocurrency is obtained by mining, that is, by the energy generated by servers during complex calculations.
What happens to the server when it is loaded? - Right! He spends a huge amount of energy. And energy is taken from non-ecological coal, which is criticized at every turn. What a “scoundrel” he is and how he pollutes the environment.
It’s not surprising to you that Elon, a smart guy by the way, invested 8% of Tesla cash in Bitcoin and suddenly a few months later: “Oh gods, what have I done, this is not environmentally friendly!” Didn’t he really know about this before bringing in 1.5 billion? It’s funny, isn’t it?
To me, this dirty manipulation reeks of crime.
How to earn 300 million in a day
Of course he knew, and he made a decent amount of money from it - 300 million $ in a day. Imagine what will happen when Elon decides to sell all his bitcoins.
My opinion is that I would not take the risk of investing in Bitcoin, especially. Given the new trends in environmental friendliness and anti-money laundering, its prospects are poor. If, of course, you want to take a risk and “tickle your nerves” in a casino, go ahead.
AXA and I are on trend
By the way, AXA, the company I work for, on the contrary, this year announced that it will support the responsible investment movement ISG (Investissement socialement responsable) and continue to increase the share of funds marked with the ESG label (Environnementaux, Sociaux, Gouvernance ). This initiative was also prompted by the loi PACTE law, which supports responsible companies by introducing quotas. This means that the company invests investors’ funds in companies that do not harm the environment, respect the rights of employees and are not involved in corruption schemes.
This is a long-term trend. And it has already shown its effectiveness; the first ESG funds appeared in the company in 2018 and have already shown higher returns and low volatility compared to classic funds. Take, for example, Perspectiv' Allegro profile (moderate investor profile), which was marked by ESG in 2020 and showed a return of 15,93%, and the classic Allegro - 2%.
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Image source: https://coinmarketcap.com/fr/currencies/bitcoin/
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