Monday morning briefing: Elon bails on Bitcoin
Athletes continued to rake in big bucks in 2020 despite the pandemic. The highest paid athlete in 2020 was Ultimate Fighting Championship star, Conor McGregor, who earned US$180 million, according to Forbes’ list of the Top 10 highest-paid athletes. Despite the pandemic hindering many sporting events, including the Olympics in Japan, sports returned to television. That said, most events had few to no in-person attendees. In earning much of their income through endorsements and other sources, athletes are understanding a key financial pillar: diversification.
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Chart of the week: Elon bails on Bitcoin
The price for Bitcoin came under pressure last week as the massive amount of electricity required to mine Bitcoin caught the public’s eye, as well as the attention of billionaires and policy makers. U.S. Treasury Secretary Janet Yellen voiced concern about the impact this mining is having on the environment. According to the Cambridge Bitcoin Electricity Consumption Index, mining for Bitcoin uses more energy than the energy required for some countries.
Now Elon Musk, previously a proponent of Bitcoin, has chimed in and expressed concern about the environmental impact of Bitcoin. Tesla has suspended the purchases of its vehicles using Bitcoin. The company will maintain its Bitcoin holdings and will not sell any until the environmental impact of Bitcoin is minimized. The news sent the price of Bitcoin spiraling down on May 13, hitting its lowest level since February, before paring back some of those losses. Can Bitcoin regain confidence and become more energy efficient? Let us know what you think..
Used with permission of Bloomberg Finance L.P.
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