Back in 2020, Elon Musk called bitcoin “the same bs as money,” but in 2021, the situation has changed (or else the billionaire has a different plan to follow). Musk began to promote Bitcoin and other cryptocurrencies on his Twitter actively.
Last month, a cryptocurrency called Dogecoin (DOGE) appeared on his Twitter account. Many then wondered: is this just another joke from Musk, or does he know something essential and secret about Dogecoin?
There are many coins out there, but Bitcoin is arguably the most popular and promising so far. However, Dogecoin (DOGE) cryptocurrency has also begun to gain popularity, thanks mainly to Tesla CEO Elon Musk.
Dogecoin used to be no better than others and did not attract much attention. However, after Elon Musk called it “people’s” crypto, it instantly gained fame. In another tweet, Elon Musk “assigned” Dogecoin the status of an “electronic god.”
It would seem complete nonsense, and Elon Musk, as usual, posts something useless and meaningless. But not everything is so simple. The so-called “Musk effect,” when people listen to a billionaire’s voice, works as a direct advertisement for something. An example is the Signal Advance company’s case, whose stock prices soared by 1100% precisely after Musk’s recommendation. By the way, the recommendation turned out to be wrong in the end.
As for Bitcoin, Musk said on Clubhouse recently that “Bitcoin is a good thing” and that he was “late to the party.” It’s hard to tell if it’s late or not late as Tesla has made about $1 billion in profit on its Bitcoin investment last month. It was very predictable that such a decision would cause a big jump in bitcoins’ price and other cryptocurrencies’ value. Musk has many followers who react to his every statement or action. It is equally clear that Tesla’s Bitcoin strategy would spark a new round of debate about whether Bitcoin will finally go mainstream as a financial asset class and possibly as a medium of exchange.
Elon Musk is definitely taking a big gamble with his Bitcoin bet, but the ultimate goal still remains unclear.