Why are these bigwigs optimistic about Bitcoin?

Source: International Financial News

Recently, Bitcoin has fallen sharply, and on Tuesday it fell below the $30,000 mark for the first time since June 22. Against the backdrop of volatile market conditions, Tesla CEO Elon Musk, Twitter CEO Jack Dorsey, and Ark Investments CEO Cathie Wood attended the "B Word" online conference hosted by the Crypto Council for Innovation on July 21 to "cheer" for Bitcoin.

The conference hopes to break the false narrative about Bitcoin circulating in the market and show institutions how to use blockchain technology to increase public awareness of Bitcoin and blockchain technology.

As we all know, Musk has always been a supporter of cryptocurrencies such as Bitcoin. Previously, he has mentioned Bitcoin and other cryptocurrencies on Twitter many times. Tesla announced in February that it had purchased $1.5 billion worth of Bitcoin. In March, Musk tweeted that Tesla accepted Bitcoin payments. Although his attitude changed to a certain extent later and Tesla's Bitcoin payments were suspended, he tweeted in mid-June that if about 50% of the energy consumption of Bitcoin mining business depends on clean energy, Tesla will once again accept Bitcoin as a payment method for the company's products.

Musk said at the meeting on July 21 that he holds Bitcoin, Ethereum and Dogecoin, and the proportion of Bitcoin he holds is far greater than Ethereum or Dogecoin. "Now I may continue to buy, but I won't sell."

In addition, Musk believes that "Bitcoin mining is shifting towards renewable energy." He said he would do more due diligence on this.

But Musk also pointed out that the underlying logic of Bitcoin is insufficient to support its development into a global payment system, and higher transaction efficiency and lower transaction costs must be achieved.

In contrast, Dorsey is more resolute in his support for Bitcoin. At the Bitcoin 2021 conference in June, Dorsey said he believed Bitcoin was a way to prevent currency depreciation and speed up the transfer of funds across borders. "Bitcoin has absolutely changed everything. I think there is nothing more important than this (supporting Bitcoin) in my lifetime."

His mobile payment company Square has allowed consumers to buy and sell Bitcoin on its Cash app since late 2017. In addition, the company has purchased about $50 million worth of Bitcoin. Not long ago, Square also announced that it was creating a new business focused on "decentralized financial services" around Bitcoin.

Dorsey hopes that he and his companies such as Square can help Bitcoin further promote the development of decentralization. He also hopes that Bitcoin can create world peace by improving the basic level of society.

Wood is also a staunch supporter of Bitcoin. When Bitcoin plummeted in May this year, she stood up and said: "I still think the price of Bitcoin will reach $500,000."

Regarding the current market situation of Bitcoin, "Wood Sister" believes that it is "very emotional", the market will be very unstable, and may even have a major impact on the stock market, so it may not be a good investment opportunity in the near future.

But she believes that Bitcoin's network effect can truly promote the realization of environmental, social and governance (ESG) goals. At the same time, the current market has a huge misunderstanding of Bitcoin, which also provides investment opportunities.

Bitcoin and other cryptocurrencies have seen extreme price volatility this year, with the price of Bitcoin trading just below $9,000 before the COVID-19 pandemic and reaching a high of $65,000 in April.

Influenced by the remarks of Musk, Wood and others, the price of Bitcoin rebounded sharply on Wednesday, rising by about 6% and currently hovering around US$32,119.

"If Bitcoin goes down, I lose money," Musk said. "I want to see Bitcoin succeed."

Reporter: Li Xizi Intern: Wang Shiqi

Editor: Cheng Hui

Editor in charge: Bi Dandan