Elon Musk appears to have again been the catalyst for Bitcoin’s price shedding more than 10% over the weekend after Tesla's CEO appeared to suggest the firm may be planning to dump BTC from its balance sheet this quarter.
On May 16, Musk replied to a tweet predicting that Tesla may dump its BTC holdings this quarter. To the chagrin of the Bitcoin community, Musk simply replied: “Indeed.”
With Musk’s popularity already dwindling within the crypto community after he criticized the energy efficiency of Bitcoin amid Tesla’s suspension of support for vehicle purchases using BTC, his one-word comment has elicited further condemnation from many leading figures in cryptocurrency.
In a Twitter thread today, billionaire investor Mark Cuban weighed in on the current state and the future of blockchain technology and investment, ultimately concluding that while there are real obstacles to adoption asset prices are increasingly reflective of real “utility” and “demand,” and that the day will eventually come when crypto is “mature to the point we wondered how we ever lived with out.”
Cuban posted the 10-tweet thread this morning, noting that as the asset class matures prices for cryptocurrencies often are now a byproduct of current use, as opposed to speculative eventual utility.
“Having more TPS and lower gas fees is not enough,” he wrote, likely referring to often grandiose claims from various layer-one chains with little activity, “There must be a CURRENT network effect and significant user growth. This is a challenge for most L1s and L2s because w few exceptions, marketing in the crypto universe is beyond awful.”
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