IMAGE: ELON MUSK TWITTER
The crypto markets suffered a major crash yesterday on May 19, as the Chinese government announced fresh bans on crypto exchanges and Initial Coin Offerings. The prices of Bitcoin, the world's most prominent cryptocurrency fell down to a 24-hour low price of $30,500 on May 19, a 30 per cent fall from its previous price of about $45,000 on May 18. Amidst all this Elon Musk showed his support for Bitcoin and the cryptocurrency market with a Tweet that said 'Tesla has Diamond Hands'. Read on to know what Elon Musk's cryptic tweet meant.
Diamond Hands is a popular phrase used by crypto enthusiasts to refer to people who HODL on to their cryptocurrency even when the prices are falling. A person who has 'Diamond Hands' is considered to be a crypto veteran who knows that holding onto your cryptocurrencies is far more profitable in the long run than selling in feat when the prices are falling. Elon Musk's Tweet about Tesla having Diamond Hand was a message that meant Tesla is going to continue to HODL on to their Bitcoin, instead of selling when the price falls, like some average paper hands.
Tesla has 💎 🙌— Elon Musk (@elonmusk) May 19, 2021
'Paper Hands' is the opposite of 'Diamond Hands' and refers to a person who sells their crypto under pressure when the price falls, implying that he is weak and impatient. These phrases began on various forums on Reddit such as the Wall Street Bets and Dogecoin forums, where people used these phrases extensively. However, these are just meme phrases on social media, and they should be considered as such. If investors are losing money on a cryptocurrency they can't afford to lose, it a safer bet for the investors to withdraw their money if it seems apparent that the price is going to continue tanking.
This is an emotional roller coaster— MrBeast (@MrBeast) May 19, 2021
Elon Musk has become an influential figure in the crypto world. His Tweet about Tesla not accepting payments a week earlier had wiped 17 per cent out of Bitcoin's price overnight. Musk's tweets in support of Dogecoin over the months have led to the Dogecoin price going up to an impressive $0.71 cents. Many in the crypto industry are unhappy with the influence a single person like Elon Musk has on the markets.