Bitcoin fell 17% by the time Tesla CEO (Tesla shares - TSLA ticker) Elon Musk has criticized his power consumption, but he is already recovering.
On May 13, fresh from its decline, it is already trading above $ 51.000, having regained more than half of the lost ground.
Therefore, we can confidently say that Bitcoin is resilient to the actions of a single user, no matter how influential it is.
Proof-of-Work doesn't care
Bitcoin's Proof-of-Work (PoW) algorithm rewards both miners and investors, because their years of work make the network stronger.
The longer the Bitcoin holds on, the less likely it is to give way to some other cryptocurrency. This is why Bitcoin continues to be everyone's favorite cryptocurrency.
When it comes to Musk, however, Proof-of-Work is significant for another reason. Just because a major investor changes their mind about the merits of Bitcoin and the price falls, miners have no incentive to leave the network or cash out.
This aspect means that Musk ultimately provides Bitcoin with good publicity rather than bad publicity. “Why is proof-of-work crucial for bitcoin? Because a valid hash (PoW) is how P2P nodes know that a block is valid, without the need for a server or a trusted third party, ”said PlanB.
He doesn't care about trends
Despite its sharp decline following Musk's words, Bitcoin's recent price action speaks more of its resilience to criticism than its susceptibility.
Ultimately, the BTC / USD spent just two hours declining before reversing the trend. Not only that, the decline also fits the normal price behavior seen this year and hasn't violated long-term price trends either.
A particularly important level that characterized the 2020-2021 bull run was the 21-week exponential moving average (EMA). Analysts said this level will determine the bottom price during dips. This time, Musk also failed to drop the indicator.
Bitcoin's "consumption" of energy is not worrying
Once the dust settles on Musk's energy critiques, the broader "debate" about how green Bitcoin is will continue in its usual wake. Most common allegations, however, have long been denied as lacking evidence.
Just last week, Michael Saylor, CEO of MicroStrategy's chief Bitcoin hodler, released a public interview in which he reinforced the lack of merit inherent in claims that Bitcoin is "bad" for the environment.
Responding to Musk, he called Tesla's decision to stop accepting Bitcoin for payments "ironic". Here are his words: "Ironic because no incremental energy is used in a bitcoin transaction," he wrote on Twitter.
"Energy is used to protect the cryptocurrency network and the net impact on fossil fuel consumption over time will be negative, all things considered."