Is Elon Musk Good or Bad for Crypto – An Unbiased Perspective

Elon Musk

He is the founder and CEO of the aerospace manufacturer, communication, and space transport services company, SpaceX. Musk is also the CEO of the electric car company, Tesla, and the founder of the tunnel construction company, The Boring Company.

In addition, he is the co-founder of Neuralink, a neurotechnology company that focuses on developing brain-computer interfaces, and OpenAI, a nonprofit research company that promotes friendly artificial intelligence.

Elon Musk did not just stop at producing science and technology-based companies, he also has an unhidden interest in cryptocurrencies. The Tesla CEO is known to own crypto assets like Bitcoin, Ethereum, and Dogecoin. At one point or another, his words and actions have affected these assets due to his status.

Let’s take a look at Elon Musk’s involvement with the three mentioned crypto assets and the effects that it had on the market.

Elon Musk and Bitcoin

We cannot specifically state the particular time Musk came to be associated with crypto, however, in 2017, an intern that formerly worked for SpaceX, Sahil Gupta, posted that Elon Musk is Bitcoin’s founder Satoshi after listing different reasons but he (Musk) denied it.

Later on in 2018, when some people started complaining about crypto scams committed with Elon Musk’s name, he revealed in a tweet that he doesn’t own any Bitcoin apart from the 25 units he claimed his friend sent him which he is unaware of its whereabouts.

On the 29th of January 2021 Elon Musk replaced his Twitter bio with a single word, Bitcoin.

After that single action by the Tesla CEO, the price of Bitcoin increased $32,000 to above $37,200. A few days later, he removed Bitcoin from his Twitter bio and started making several tweets about the popular meme cryptocurrency, Dogecoin (DOGE).

Musk, through his company Tesla, officially started investing in crypto when he added $1.5 billion worth of bitcoin to the company’s balance sheet and announced that customers will soon be able to make payments for Tesla products with Bitcoin. After Tesla’s purchase, Bitcoin recorded an all-time high of above $44,800.

Tesla rolled out its Bitcoin payment feature a few months later, alongside the traditional card payment option. Clients in the US would be able to pay for any Tesla rendered services, including buying their cars, with Bitcoin and the company would not convert the bitcoins amassed to fiat.

The incidents of Elon Musk adding Bitcoin to his Twitter bio, buying bitcoin, and rolling out bitcoin payment features for his company not only increased the price of the assets but prompted several individuals and large institutions to join the crypto bandwagon.

For companies that did not directly start accepting bitcoin, some started providing trust funds and several other bitcoin-related services for their clients.

While Elon Musk’s crypto movements usually affect the market positively, some actions he has taken have also caused negative results too. For instance, when he announced that Tesla would no longer accept bitcoin payments stating that Bitcoin mining and transactions require a lot of fossil fuels.

Although the company mentioned that it won’t sell off the Bitcoins it has amassed which were worth about $2.5 billion, a lot of people panicked and started selling off their bitcoins. While the price drop was a bad time for some investors, others took advantage of the situation to increase their bitcoin holdings.

One of them, MicroStrategy a publicly-traded business intelligence and software company, bought a total of 271 bitcoins and they were worth $15 million in cash at that time.

Elon Musk and Ethereum

Another cryptocurrency that Musk got involved with is Ethereum. At the B Word conference, an event hosted by the Crypto Council for Innovation, Musk revealed that he owns Ethereum. After that statement, the price of crypto increased by more than 12% and was near the highs of the day.

Elon Musk and Dogecoin

Dogecoin is one coin that received several praises and compliments from Elon Musk. After the Tesla CEO removed Bitcoin from his Twitter bio, he made several tweets about the meme-inspired cryptocurrency.

In one of the tweets, he described Dogecoin as the “people’s crypto,” causing the price of the cryptocurrency to jump more than 80% within minutes. During that time, DOGE was trading at $0.537.

Recently, at one time, the price of DOGE increased by 10% in just 24 hours after billionaire investor Mark Cuban told CNBC that the coin belongs to the strongest when it comes to using it as a medium of exchange and Elon Musk on Twitter agreed to his statements.

All of Dogecoin’s gain in 2021 could directly be attributed to Musk’s influence, even though the billionaire’s appearance on Saturday Night Live in early May ended up as the market price top for the meme-inspired cryptocurrency.

Conclusion

As a high-profile individual, Elon Musk often dropped comments and took actions that ended up shaking the crypto markets, either positively or negatively. The choice to decide whether to invest in crypto or the type to invest in is a personal choice.

To better succeed at crypto, it is best to get rid of emotions like fear, greed, or impatience. Another thing to trash is believing every piece of information on the internet.

While situations like Elon Musk or any other high-profile individual or organization posting information about crypto are beneficial to gauge the market, it would be unwise to make investment decisions based on the opinion of another person.

Leave a Reply

Your email address will not be published.

Related Articles
Read More

Binance Winds Down Derivative Products In Germany, Italy And Netherlands

Binance has been facing tough regulatory scrutiny worldwide. In response to this, Binance has stated that it is halting derivatives product services in Germany, Italy and Netherlands. The largest cryptocurrency exchange, Binance, has announced that it will halt futures and derivatives trading in these three...
Total
0
Share