Talking about the ups and downs of the market, the offense and defense behind Musk's "green" BTC

Musk has a deep understanding of national strategies, grasps human nature to pursue profit, and is able to play with cryptocurrencies. This allows him to move step by step closer to his grand vision of colonizing Mars.

If we look at Musk from this logic, perhaps we don’t have to be so confrontational about Musk’s “change of face” towards Bitcoin - of course, if you see that the Bitcoin in your hands is depreciating, it would be difficult for you not to scold him.

At 5:30 am on May 13, the cryptocurrency market crashed. BTC fell from $54,700 to $45,700, a drop of more than 15%; in the following days (as of press time on May 17), it continued to fall to $42,000, a drop of more than 22%. The contract market was in a bloodbath, with hundreds of thousands of people losing hundreds of billions of yuan.

This incident started when Musk announced that Tesla would no longer accept Bitcoin payments. This incident deserves public outrage. Some people say he is a liar. Some people organize attacks to sell Tesla stocks and cancel Tesla orders... But if you think back to when Musk started to call for Bitcoin, you should be relieved - if you can't afford it, don't play! Musk can do this because he can afford it.

In the world of cryptocurrency, Musk is like a person with a God's perspective. His early layout of Bitcoin and Dogecoin has enabled him to obtain the capital to battle with traditional financial giants - this is crucial because his Tesla was in danger of death and was tossed around by traditional financial players.

Tesla and SpaceX, which Musk has worked hard to run for many years, have always faced the pressure of financing, because these are huge money-burning things, and the revenue can't support them at all. However, after multiple rounds of super-large financing, Musk has always been the largest shareholder of Tesla, which makes the financial giants on Wall Street jealous - their usual practice is to provide financing and gradually gain control; if they can't gain control, they usually make you lose the ability to raise funds, and finally have to sell at a low price.

In 2018, Tesla was shorted by the capital market. This time was just right for traditional financial capital. Tesla was about to bear fruit, but there was no financing. Musk had no choice but to succumb to financial capital. This was Musk's most difficult time. Although he survived, Musk knew that he could not beat these people, which led to the story of him calling for orders on Bitcoin and playing with Dogecoin.

In the world of Bitcoin, Musk is ultimately a latecomer. He once expressed regret in an interview that he knew about Bitcoin as early as 2013 but did not buy it at that time, when the price of Bitcoin was less than $1,000. By the time he called for an order to open a position, the price of Bitcoin had reached more than $20,000.

But Musk still tasted the sweetness of financing from Bitcoin. Tesla's subsequent "announcement" showed that as of March 31, 2020, the fair market value of the company's Bitcoin holdings was US$2.48 billion, which means that if the company cashes in the digital currency, it is expected to record an investment income of about US$1 billion.

But there is always the worry of "taking over". The joke-like existence of Dogecoin is combined with Musk, and he was elected as CEO by everyone.

Under Musk's "godfather" encouragement, Dogecoin has become a veritable 100-fold coin, while Bitcoin's growth is obviously incomparable, and even underperformed this round of bull market. Musk accidentally moved the cheese of Wall Street. Grayscale Investments, a Bitcoin "open dealer", holds more than 650,000 Bitcoins under its Bitcoin Trust Fund, which is worth more than $32.2 billion, but it is not doing well.

Since March, the number of Bitcoins held by Grayscale has decreased by more than 50,000, and the GBTC issued has continued to have a negative premium, which once exceeded 20%, indicating insufficient demand and heavy selling pressure. On May 8, Grayscale Investments founder Barry Silbert could no longer sit still and tweeted: "Okay, DOGE (Dogecoin) guys, it's fun. Welcome to the crypto world! But now is the time to convert your Dogecoins into Bitcoins. Barry also said that he has begun shorting Dogecoin.

When the news that Wall Street shorted Dogecoin reached Musk's ears, what do you think he would feel? This is a continuation of the previous battlefield!

Musk used the excuse of "green" and energy conservation and environmental protection - this is in line with the Biden administration's high-profile overturn of the Trump administration's energy strategy and will rejoin the "Paris Climate Agreement". Responsible major powers such as the United States and China are actively planning to implement international carbon neutrality goals.

Perhaps Musk’s previous experience of being called in for tea by the regulators stimulated him and made him alert—although he will not be subject to the supervision of sovereign governments or the laws of Earth when he arrives on Mars, he still has to do it on Earth. The breakup with BTC is inevitable, and he just found such a good excuse to make a statement to the sovereign government.

Musk launched an investigation into using Dogecoin to pay for Tesla transactions, proving that he has many followers; he tweeted that Dogecoin can speed up block time 10 times, increase block size 10 times, and reduce transaction fees 100 times. Dogecoin was shorted by Bitcoin bigwigs, and it is not difficult to understand that Musk jumped to the camp and attacked Bitcoin. Only in this way can all his actions point to the possibility of colonizing Mars, which is full of lies and full of extreme pursuit ambitions.

However, Musk should have a better plan. The godfather-like followers and the virtual coins with the "MLM" gene will collapse in an instant. Looking at the long-term, the cryptocurrency community should thank Musk for this wave of Bitcoin callback - the DeFi and NFT business application ecosystem based on Layer2/Ethereum 2.0 needs a longer bull market to complete.

In the past few weeks, a bunch of air coins that ran out of Zootopia ignited the enthusiasm of the cryptocurrency circle, the crazy feeling, and the bubble of chasing the rise, which is very similar to the market between 2017 and 2018. If there is no episode, the bubble will blow again, which may be the last carnival of this bull market.