Elon Musk urges government to "do nothing" to regulate crypto
Crypto companies need to take it upon themselves in order to act. So we dont face a potential financial crisis, and then you have elon musk saying that the government needs to take a hands off approach. What do you make of all this yeah? I mean its a long standing debate in crypto. You know our regulations are good bad for the industry. Do they help legitimize markets, stifle innovation? You know, i think both things can be right and i understand where elons coming from but um you know, regulation does slow down the advancement of the technology and its in its adoption. But then again you know. The counter argument is that it also, you know, provides consumer protections. It you know, prevents the presence of fortunate platforms. It makes the industry more attractive to new investors. You know uh licensing regulations, for example. You know these things. You know it can be seen to to you know, create barriers of entry for new businesses and kind of you know, stifle entrepreneurial uh people, but at the same time you know it it weeds out those fortune, companies, you know, and it ensures that people are serious And companies are serious about offering beneficial services to the market do so so i mean theres good arguments for both. Do i think you know, do i think elons right in saying it should be zero regulatory oversight? I think thats a little bit extreme uh. To be honest, um, you know you only have to look back at you know the 2017 ico boom and you see the huge amount of fraud that took place then to understand that there needs to be like a little bit in the space at least um.
Do i think you know going back to uccs comments you know about you know bitcoin cant be used uh for anything to spend. I think thats thats completely false. You can buy thousands of things with bitcoin now um. Yes, its volatility makes it uh, not the best sort of medium of exchange, but there are services and products that you can buy with it right now, so um yeah its just the fact that its such a good investment go ahead. I want to switch gears on something else that musk talked about, which is energy demand in china, and this um potential its an allegation. I cant think of the right word, but theyre saying that random power, outages um, because demand for power is higher than expected, could be attributed to bitcoin and crypto mining. Is that really that much power is being drawn to to mine cryptocurrencies? I mean it takes an awful lot of energy to mine, cryptocurrency um. I havent seen that report personally, but i mean you know. A lot of it now is is renewable. I think it accounts for less than a percent, or maybe just one percent of americas – entire uh energy uh output. So i mean you know theres this, yes, its big, but its globally distributed. No single country is supporting the entire network. Um, you know. Comparing you know. We have to look at the broader financial system as well, that uses a huge amount of energy.
Probably you know you know you know times more. You know x times more than bitcoin currently uses. So if its causing outages yeah, it depends if its localized in a certain area that cant handle that and mining now has been redistributed because of the the clamp down in china, its forced you know, mine is other elsewhere, but um yeah, i yeah, i dont know. I havent havent seen the reports myself well what about the uh crackdown in china, because its interesting when you take a look at the price of bitcoin over the last five days, its off just around three and a half percent its holding above 41 000. So it was under a bit of pressure after we got that news out of china, but we didnt necessarily see the massive sell off that. Maybe some would have expected to see. Why do you think that is yeah? A number of reasons? I think you know a lot of people are confused. Now they dont really understand what happened, what it means when china bans crypto anymore. You know weve seen this headline so many times now for the last couple of years. You know, particularly you know. More recently, we saw it in may and that didnt really have a huge impact on the market were seeing it again and prices dropped. You know bitcoin, i think, dropped around two thousand dollars when that announcement came out on the 24th, but but its bouncing back again.
I just think people are kind of over that news. Now. You know the the industry is now starting to move away from its dependency in china, particularly mining, now um, so yeah it just doesnt have the same uh grip on the market that it used to. Have you know, go back 2017 when, when it really used to, you know, send bitcoin and the rest of the market tumbling um yeah its just this is kind of seems to be the final nail in the coffin for crypto in china. At the moment, i cant see how you know how they can really push on from here. Theyve now virtually banned all forms of crypto trading, and now even the people themselves cannot buy, sell or trade. You know cryptocurrencies uh and even people cant work for foreign exchanges. How would you explain it seems as if uh bitcoin itself is caught in this range, cant get back above 43 000 wont fall below 41 250 whats it going to take either to bust out to the upside or the downside. Is there anything in the past that we can look for to indicate what possibly could happen? Yeah theres like a couple of thoughts, really like theres, still a lot of liquidity down around that 30 000 mark, maybe even a little bit lower. There might be people waiting for it to to drop all the way down there eat up all that liquidity and push on. We.
We just dont, really know right now that 50 000 psychological level is. You know thats still, a huge part that we need to break through and and its just you know there. Hasnt really been a great deal of positive news coming out through, for bitcoin, specifically, were still seeing a lot of attention by d5 and nfts. A lot of exciting innovation in that area, but you know right now: bitcoin is theres, not really an awful lot going on were still waiting for for an etf, you know were still waiting for for a positive uh outcome from this whole broker. Definition of the infrastructure bill and things like that were still waiting to see how thats going to shape the market uh going forward.