[Bitcoin Now] Rises to 45 Million Won Range... Musk's Potential Resumption of Bitcoin Payments

Tesla Suspends Bitcoin Payment System Last Month Due to Environmental Issues
Analysis Also Points to Lack of Upside Potential... "Due to Environmental Concerns, National Regulations, and Excessive Leverage Pursuit"

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The representative cryptocurrency Bitcoin has risen to the 45 million KRW range. The prospect that Elon Musk, CEO of Tesla, will allow Bitcoin payments for Tesla products again acted as a positive factor.

According to the domestic cryptocurrency exchange Upbit, as of 7:32 a.m. on the 4th, Bitcoin recorded 45.36 million KRW, up 3.72% compared to the previous day. This is the first time it has reached the 45 million KRW range since it dropped to the 43 million KRW range on the 28th of last month.

The news that CEO Musk may provide Bitcoin payment services again seems to have had a positive effect. On the 2nd (local time), the UK media Birmingham Mail reported, "After recently exchanging opinions with Jack Dorsey, CEO of Twitter, Musk changed his mind toward allowing Bitcoin payments again," adding, "Dorsey and other cryptocurrency experts persuaded him that Bitcoin mining promotes the development of new renewable energy industries."

Previously a Bitcoin advocate, CEO Musk recently criticized Bitcoin citing environmental issues. On the 12th of last month, Musk stated on Twitter, "Fossil fuels are excessively used due to Bitcoin mining and transactions," and "Because it adversely affects the environment, we will stop Bitcoin payment services." Since then, the cryptocurrency market has been greatly shaken. On the 12th alone, it fell by 10.73%, and within a week, it dropped from the 70 million KRW range to the 42 million KRW range.

Meanwhile, there are interpretations that the cryptocurrency market lacks upward momentum. According to cryptocurrency specialized media Coindesk on the 3rd, US investment firm MRB Partners analyzed in a report that Bitcoin's upward trend is nearing its end. MRB Partners pointed out, "Environmental issues, government regulations, and excessive leverage pursuit can cause headwinds for cryptocurrencies," and "It is necessary to mine cryptocurrencies at lower costs to reduce environmental problems." Additionally, MRB Partners explained, "Cryptocurrencies may become mainstream investment tools, but they will have to go through tremendous volatility over a very long period."