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The Elon Musk Effect
What a wild week for the crypto market, Elon Musk tweeted that Tesla will no longer accept Bitcoin for payments due to the environmental impact of Bitcoin mining and this crashed Bitcoin and the rest of the crypto market. He then tweeted that he is working with Doge developers to improve Dogecoin and that sent Doge pumping. Both Bitcoin and Doge are Proof of Work coins, so this is very confusing as to what Elon is trying to do here.
Some are speculating since Elon’s companies, Tesla and SpaceX, get subsidies from the government, he was forced by the government to stop accepting Bitcoin as payment. Others such as Anthony Pompliano suggested Elon is highlighting the problem with Bitcoin mining because he and Tesla have a clean energy solution. Only time will tell the reasoning behind Elon’s move.
It is important to note that both Elon and Tesla still hold their respective Bitcoins. They have not sold off any.
Nevertheless Bitcoin is still on track as per PlanB’s stock to flow model. Here is what PlanB tweeted with the chart below:
“Net result (after Turkey ban, US tax FUD, Faketoshi law suits, Elon/Tesla energy FUD) is that bitcoin is 5x higher than ~6 months ago. And both S2FX model + onchain data indicate that we are only halfway this bull market. I would not be surprised to see another 5x next ~6 months.”
Yesterday I got access from Coinbase to stake my Ethereum. I started staking some of my Eth to earn rewards. Note that you should put a lot of thought into how much Eth you would stake as it could be locked for a long time. I’m not staking the Eth that I plan to cash out at higher prices this year.
Most bullish news from this week
Samsung is connecting its smartphone’s cryptocurrency wallet to Ledger storage devices, adding to a string of recent crypto-centric news to come out of the South Korea-based technology giant. (source)
Singapore-based DBS Private Bank launches Asia’s first cryptocurrency trust service backed by a bank. DBS is offering its clients the ability to invest and manage up to four assets through the bank’s wholly owned, licensed trust company DBS Trustee. The assets are bitcoin, ether, bitcoin cash, and XRP. (source)
UBS Bank exploring crypto investment for its wealth clients. Yet another bank adopting crypto. (source)
Scott Conger, Mayor of Jackson, TN. The Mayor is looking to integrate crypto into the city of Jackson. He discusses his plans to have employees paid in Bitcoin, mining Bitcoin, and putting said mined Bitcoin on the city’s balance sheet.
Interviews in the process of being Scheduled
Michael Arrington - Founder of TechCrunch and Arrington XRP Capital
Are you tracking your taxes for your Crypto trading? Be sure to do so, I personally use TaxBit to help me prepare my crypto taxes which I then share with my accountant. Visit TaxBit’s website to learn more.
Disclaimer - Thinking Crypto and Tony are not financial or investment experts. You should do your own research on each cryptocurrency and make your own conclusions and decisions for investment. Invest at your own risk, only invest what you are willing to lose. This newsletter is for educational purposes and NOT investment or financial advice.