Traders and other industry experts often discuss Elon Musk’s love-hate relationship with cryptocurrencies, especially as of late. Some have called Musk a crypto-influencer looking to educate the masses through memes, tweets, and TV appearances. On the other hand, some critics have accused Musk of market manipulation, calling his antics nothing more than a “pump and dump” scheme. While Musk’s endgame remains unclear for the time being, there’s significantly more to his influence than meets the eye.
Musk’s views on cryptocurrencies and their future have continued to evolve rapidly with him both calling it a savior of the current system and a joke on separate occasions. While Musk has helped push prices up by tweeting about Bitcoin’s clean energy promise, he has also sparked debate about Bitcoin’s centralization due to the establishment of the Bitcoin Mining Council. Musk’s mixed Bitcoin messaging has also translated over to his actions at Tesla. In February 2021, Musk announced that Tesla would invest $1.5 billion, which resulted in the price of Bitcoin hitting a high and pushing the price over the $50,000 mark for the first time. While the company sold 10% of its stake, it reported $2 billion of Bitcoin holdings at the end of the fourth quarter in an SEC filing, with Musk vowing to hold it for the long run. Musk also briefly introduced bitcoin as a means of payment for Tesla cars, which resulted in the price skyrocketing. Not long after, Musk revealed that he had dropped plans to offer Bitcoin as a payment mechanism, citing concerns about the environmental impact of mining Bitcoin with the price promptly falling as a potential direct result.
While Musk has briefly flirted with the idea of bitcoin transactions, he has wielded even more significant influence over Dogecoin. Musk has repeatedly expressed his affection for Dogecoin through several memes, labeling it the “people’s crypto.” Musk’s Doge affair began after he started hearing rumblings from workers at production lines at both Tesla and SpaceX stating that he decided to support it due to its mass appeal. Musk has used Twitter to showcase his support for Dogecoin on several instances in the past. In February 2021, Musk posted a picture of a rocket next to the moon, followed by a tweet stating “Doge” in relation to the saying ” to the moon,” a term for an asset-price surge. Ahead of Musk’s Saturday Night Live appearance in May of 2021, the price of Dogecoin dramatically shot up with speculators expecting a direct mention on camera. However, Musk’s subsequent comments on the show – stating that Dogecoin was a hustle – resulted in the price of Dogecoin sharply dropping. Despite this, Musk remains positive on Dogecoin, allowing Tesla customers to use Doge as a payment option for select accessories and the use of the company’s supercharging stations. In addition, he has also been in contact with the Doge team to improve the security and efficiency of transactions.
Critics remain skeptical about cryptocurrencies’ ability to store value, provide a means of exchange, and replace the existing financial system. A combination of global political uncertainty, monetary stimulus measures from governments,, and rampant inflation has caused most market participants to evaluate the reserve status of the US dollar. The recent conflict between Russia-Ukraine seems to have further pushed that narrative, with countries looking to switch away from the US dollar due to the fear of economic sanctions.
Investors have sought to buy Bitcoin, buy Dogecoin, and other payments-focused cryptocurrencies due to the allure of conducting transactions without the state’s interference. Over the past few years, several publicly traded companies such as software firm MicroStrategy, payments company Block, and video game developer Nexon have added Bitcoin to their balance sheet. They’ve cited that it would be a hedge against inflation. While the investments made by these companies have altered public perception, none have had a greater influence than Tesla.
The final push to get cryptocurrencies to receive universal acceptance and serve their purpose as a means of exchange or store of value could come from Musk himself. Musk, the world’s richest and, arguably, most influential person, has spent over a decade cultivating groundbreaking brands such as Tesla and SpaceX. While Musk has often created chaos in crypto markets through his head-spinning tweets, often flip-flopping between the use-cases for the nascent asset class, his actions show that cryptocurrencies need to be taken seriously as an investment. Tesla’s $2 billion bet on Bitcoin got the ball rolling, with everyone from Goldman Sachs to JP Morgan looking to play catch up by offering crypto funds or services.
Musk’s recent purchase of his Twitter stake and social media influence could spark the next wave of consolidation in the crypto markets. Musk’s $3 billion investment in Twitter for a 9.2% stake could also indicate plans to roll out widespread adoption, similar to the system rolled out in Tesla earlier in the year. Twitter has been building its crypto team since November 2021 with an initial focus on crypto payments, NFT monetization, and decentralized social media. Market participants now anticipate that Dogecoin payments could be integrated into Twitter, validating it as a means of exchange.
Elon Musk has exerted significant influence over the cryptocurrency markets, popularizing Bitcoin and Dogecoin through tweets and memes. Musk’s most considerable contribution could come down to his ability to bring crypto to the mainstream, both through his crypto investments and his vast social media following and influence.
We are unsure exactly what Musk owns but has become an adamant supporter of Dogecoin, tweeting and hyping the cryptocurrency consistently over the years. If you would like to join Elon in owning Dogecoin feel free to use our platform Doge/USDT.
Again, we are unsure exactly what Elon uses to purchase his Doge and any other cryptocurrencies. With that being said, our Cryptocurrency Exchange AscendEX allows you to buy Dogecoin and many more cryptocurrencies.
Despite what many think Elon Musk does not currently have a crypto project created by him. Rather there are many “meme projects” such as Elongate, Dogelon, and Shiba Inu (SHIB / USDT) that try to associate themselves with Elon.
Photo Credits: “Elon Musk Royal Society” by Duncan.Hull is licensed under CC BY-SA 4.0 Adaptations by Aviate Creative.