Elon Musk wasn’t exactly the most popular person amongst Bitcoiners last week. He spent several days criticizing Bitcoin’s energy usage (so much so that he walked back Tesla’s earlier decision to accept Bitcoin for vehicles), and pumping up his favorite altcoin, Dogecoin. Now, as the Bitcoin market takes a massive plunge, Elon says that he’s not selling Tesla’s Bitcoin holdings.
The tweet is using fringe Reddit lingo, as is typical for Musk. The phrase “diamond hands” originates from (or at least was popularized by) the /r/wallstreetbets subreddit, and Elon is using it here presumably to refer to Tesla’s Bitcoin holdings. Bitcoin took a 20% dive today alone and is down more than 40% this week.
Of course, Elon isn’t saying anything explicitly, so we just have to assume the most obvious interpretation is what he really means.
Last week, Tesla walked back its prior decision to accept Bitcoin for Tesla vehicles. Elon Musk cited concerns about “rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.” Apparently, a lot can change in two months. But still, Elon admitted at the time that Tesla wasn’t selling any of its Bitcoin holdings.
Other significant players in the space such as ARK Invest and Square have remained committed to their long term story for how Bitcoin can actually help accelerate the world’s move to renewable energy (an angle that does indeed have many arguments of substance) despite its consumption, a narrative that Elon publicly agreed with just a month ago.
Weirdly enough, that announcement came just after tweets sent only a couple days earlier that seemed to ignore the same theoretical issues with Dogecoin. Selections as: “Do you want Tesla to accept Doge?” (to which 80% of Elon’s followers voted “Yes”) and “SpaceX launching satellite Doge-1 to the moon next year – 1st crypto in space!”.