#Musk Elon Musk, the CEO of Tesla and SpaceX, has had a significant impact on the cryptocurrency market through his statements and tweets on X (formerly Twitter). His support for certain cryptocurrencies, such as Bitcoin and Dogecoin, has caused notable price fluctuations, but he has also warned about the risks associated with investing in them. Here’s an overview of his relationship with cryptocurrencies:
Musk's support for cryptocurrencies
1. Bitcoin:
• In 2021, Tesla invested $1.5 billion in Bitcoin and briefly accepted it as a payment method for purchasing its cars. This announcement caused Bitcoin's price to surge significantly.
• However, in May 2021, Tesla halted its acceptance of Bitcoin due to environmental concerns related to the high energy consumption of mining the currency, resulting in a 12% drop in its price and a $365 billion loss in the market.
• In 2022, Tesla sold about 75% of its Bitcoin holdings, sparking controversy over Musk's commitment to the currency.
2. Dogecoin:
• Musk is considered one of the prominent supporters of Dogecoin, referring to himself as the 'Godfather' of the currency. His tweets about Dogecoin, such as one in 2021 that included a picture of a Shiba Inu dog, caused significant price spikes, including a 63% jump in one day.
• In 2021, his tweets caused Dogecoin's price to reach record levels (around $0.75), but his sarcastic remarks during the 'Saturday Night Live' show led to a sharp decline.
• Musk confirmed that he personally owns Dogecoin, along with Bitcoin and Ethereum.
3. Other coins:
• Musk expressed his ownership of Ethereum in 2021, but he has not supported it to the same extent as Dogecoin.
• Indirectly supported meme coins like Shiba Inu and Floki Inu through symbolic tweets, affecting their prices.
• Coins named after Musk, such as Dogelon Mars and ElonFlokiInu, have emerged, but they are not officially supported by him and are often used to capitalize on his fame.
4. X Money and the future of cryptocurrencies:
• Musk is working on developing a digital wallet called X Money within the X platform, aimed at integrating digital payments with social services. There are speculations that it may support currencies like Bitcoin or Dogecoin, or even a new digital currency, but there is no official confirmation yet.$DOGE