Musk turns against overnight, strongly promoting Dogecoin to challenge Bitcoin?

This article is from Rhythm BlockBeats.

Rhythm BlockBeats reported that on May 17, Bitcoin briefly fell below $45,000, with a 24-hour decline of over 5%. The world's richest man, Tesla CEO Elon Musk, seems to have become the instigator of this plunge.

Recently, Musk changed his previous supportive stance on Bitcoin, first stating on Twitter that Bitcoin consumes too much energy, uses excessive non-renewable resources, and causes severe environmental impacts, leading Tesla to stop accepting Bitcoin as a payment method. At that time, Bitcoin dropped 15%, with over $2 billion liquidated across the network. However, Musk himself denied rumors that he had sold his personal Bitcoin holdings.

Collaborating with Dogecoin Developers to Expand Capacity

On May 16, Musk's attitude towards Bitcoin showed a significant change. He frequently posted on Twitter, first stating that he was working with Dogecoin developers, hoping ideally to increase Dogecoin's block time by 10 times, increase the block size by 10 times, and reduce transaction fees to 1/100.

Subsequently, a user asked him if he was considering launching a new token that could meet technical requirements and achieve decentralization from the start. Musk replied that creating a new token is a complicated matter, and he would not consider creating a new token if Dogecoin could meet all the needs.

Afterward, amid continuous questioning from netizens, Musk began to express his "dissatisfaction" with Bitcoin.

A netizen attached a picture asking him, "How to solve the problem of Dogecoin being too centralized?" The image listed an address holding 10 billion Dogecoins, which was only one. In response, Musk said, "This large account should belong to an exchange; maybe you can check. I was told the largest account should belong to Robinhood."

Until this point, he had not made a very clear "criticism" of Bitcoin.

In the early hours of May 17, while replying to Twitter users, "Dogecoin" father Musk bluntly stated: "The computing power of Bitcoin is highly centralized; a power outage in a single region caused Bitcoin's computing power to drop by 35%, which is clearly not decentralized." He also mentioned regarding currency experts, "Have you heard of PayPal? I might understand how money works better than you."

Hinting that Tesla may have sold its Bitcoin holdings

Next, a netizen named Mr. Whale posted, "Next quarter, Bitcoin investors will probably slap themselves in the face when they find out that Tesla has sold its Bitcoin holdings. Musk has received so much hatred, but I won't blame him."

Musk replied, "Indeed."

As of the time of publication, Bitcoin is quoted at $44,900, down 24 hours.