Elon Musk Initiates Significant Bitcoin (BTC) Price Correction, Proposes a Radical Dogecoin (DOGE) Upgrade
The cryptocurrency market led by Bitcoin price is currently experiencing a significant price correction, thanks to the decisions mainly made by Elon Musk and his rants on Twitter against the Bitcoiners. While the global crypto market corrected by more than 12%, Bitcoin price has corrected by around 10%.
A few days back, Elon Musk announced that his company Tesla will not accept Bitcoin (BTC) as payment for its electric vehicles because of the concerns surrounding carbon emissions. Though he said that the decision is temporary and the company will start accepting BTC once the environmental concerns are taken care of by the Bitcoin network. Today, he had a Twitter fight with other Bitcoiners and indicated that Tesla may sell all its Bitcoin holdings this quarter.
In fact, Ethereum’s co-founder Vitalik Buterin is also responsible for the drop in the cryptocurrency market. He had given away over a billion US dollars worth of altcoins to charitable organizations in the last few days, especially the ones that were given to him by various altcoin networks including dog-themed coins such as Shiba Inu (SHIB), etc. This made many altcoin prices decrease significantly in the last few days.
The actions of both the billionaires have led to the wiping out of US$300 billion from the cryptocurrency market.
The bitcoin price against the US Dollar has corrected downwards by almost -27% in the last 7-days. Even after Coinbase announced that they will list Dogecoin (DOGE), the meme-based cryptocurrency has lost ground by around -7% in the last 24-hours.
Elon Musk may be one of the reasons why Bitcoin and the cryptocurrency market are witnessing a significant price correction currently. However, this hasn’t stopped him from proposing a radical dogecoin upgrade. He went on to say that Dogecoin (DOGE) must “become the currency of Earth”. The Tesla CEO believes that the dog-themed meme coin beats bitcoin “hands-down”.
Musk reasoned:
“Ideally, doge speeds up block time 10X, increases block size 10X, and drops fee 100X. Then it wins hands down.”
In response to a post made by a dogecoin fan account, Elon Musk said:
“For those bad at math, 100X higher transaction volume with 100X lower fees means total fees earned stay same…Low fees and high volume are needed to become the currency of Earth.”
Reports say Elon Musk’s proposal is similar to the one that made the bitcoin network lead to a hard fork in 2017, which led to the creation of Bitcoin Cash (BCH). Bitcoin Cash network is better suited for making a larger number of smaller transactions than that of Bitcoin network.
A crypto pioneer and chief executive of bitcoin development company Blockstream, Adam Back, replied to Elon Musk by saying:
“The 10,000 alts tried all manner laughable physics and comp sci failed things… There are multiple issues with large blocks. Bitcoin has at this point the most hyper-optimized, algorithmically and hand-tuned assembler fastest ECDSA [Elliptic Curve Digital Signature Algorithm] signature verification code for a reason.”
Later Elon Musk indicated that the remainder of Bitcoins held by Tesla (which is worth over US$1 billion) may be sold during this quarter. Tesla has already sold some of their Bitcoin earlier but at that time the company claimed that it was done only for testing the liquidity of the market.
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