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[Blockchain Today Reporter Ji-eun Lee] In response to news that Tesla will withdraw from accepting Bitcoin payments last week and rumors that Elon Musk will sell Tesla’s Bitcoin, Global Data’s theme analyst Danyaal Rashid said his Expressed views.
According to Danil Rashid, Musk’s whims provide good entertainment and a lot of news, but the results are far more realistic. It is difficult to convince anyone who truly believes that the future of currency lies in digitization and decentralization. People should be concerned about the killing that a few words of his words could cause such price fluctuations.
Whatever Elon’s view of cryptocurrency, it is clear that for now, his influence on price is too great. It is contrary to the ideology of’decentralized finance’ that a person’s central character has such great control. This has a negative impact on price stability and can be negative for the mainstream adoption of cryptocurrencies, especially in the payment sector.
Whether you view cryptocurrency as a currency or an asset, some price stability is required. There will be some level of volatility in all assets, but those fluctuations will in some way be related to both the underlying and real-world events.
Although, as evidenced in the last 15 months, the market may be considered irrational and away from the foundations of the real world, it is uncommon for an individual to exert this power on price. If this continues, people may lose confidence in cryptocurrency, as a single Musk tweet could radically change the price. This is what leads to the heart of the problem. A certain level of stability is required for the spread and combination of cryptocurrency. If people want to pay with cryptocurrency, this is an obvious problem. If the weekly price fluctuation is expected to reach a maximum of 20%, it will not be possible to use it as a payment currency.