Musk’s Tweets Swayed Some Investors on Bitcoin Environmental Concerns, Survey Shows

A survey shows some 49% of respondents said that “bitcoin being environmentally unfriendly" is an issue for them as an investor.

AccessTimeIconJun 29, 2021 at 6:12 p.m. UTC
Updated Sep 14, 2021 at 1:18 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Just under half of U.S. investors have a problem with bitcoin’s environmental issues, with some of them apparently swayed by Tesla CEO Elon Musk’s tweets on the matter, a new survey shows.

Some 49% of 1,103 respondents to the Investing.com survey said that “bitcoin being environmentally unfriendly" is an issue for them as an investor, according to a summary of the results posted on the information service’s website

The survey provides some evidence of how drastically some investors’ opinions on bitcoin changed after  Musk tweeted his concerns in May, when he reversed an earlier policy of accepting the cryptocurrency as payment for Tesla's electric vehicles.

Since then, there’s been about a 40%% price drop for the world’s largest cryptocurrency, according to the CoinDesk Bitcoin Price Index. Cathie Wood, CEO of Ark Investments, said at the Robin Hood Investors Conference on June 16 that the downturn was due to investors’ growing awareness of the sheer amount of electricity it takes to mine the cryptocurrency. 

Some 70% of investors who took part in Investing.com’s survey said they would favor a more “green” cryptocurrency, while 36% didn’t even realize that bitcoin had environmental implications before Musk’s comments on the issue. 

According to Investing.com, 30% of the respondents sold their bitcoin last month, with one in five attributing the decision to Musk’s comments about the environment. 

Musk’s tweets on cryptocurrency were seen as “annoying” by 33% of respondents, “unfair” by 22% and “entertaining” by 27%, the summary reads. 

“After being hailed and crowned as king of the crypto community, Elon Musk has made himself some new enemies lately, following his recent shock about-face on bitcoin,” said Jesse Cohen, an analyst at Investing.com. “For an asset whose price is driven mostly by psychological sentiment and momentum, bitcoin could have a hard time recovering.”

When respondents were asked if Musk’s “manipulation of cryptocurrency values has changed their view of that investment,” 51% said Musk has “too much power” and 24% said they don’t believe the billionaire has too much influence. 

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.