Elon Musk influence on cryptocurrencies

Elon Musk influence on cryptocurrencies

You could say that Elon Musk is recognized as one of the tycoons in terms of innovation and cryptocurrencies, he is also seen as the president of the United States in terms of these markets. The comments he makes, within his Twitter account, or even his performances within different television shows, have a direct impact on the market for virtual currencies, better known as cryptocurrencies, just as a president usually impacts the stock market. .

One of the most recent proofs of this influence occurred, when bitcoin fell 12% it was just at the time that he said that his company Tesla will not receive cryptocurrency as a method of payment for its electric vehicles.

As a result of the previous tweets and Elon's jokes, the company proceeded to buy a large amount of bitcoin, recognized as one of the largest cryptocurrencies in the world, for which it has become the second largest participant in this virtual currency.

However, his influence does not end there, since Musk has also had a great impact on cryptocurrencies such as dogecoin, a cryptocurrency that started its transactions as a joke and which is currently one of the most valuable in the world, according to pages such as CoinMarketCap.

Musk is also recognized as one of the richest people on the planet, to the point that he played a character in a segment of "Saturday Night Live" in which he tried to explain what the dogecoin cryptocurrency was, admitting that it's just "a hustle."

After these comments, the virtual currency fell 40% to US $ 0.44, after having had a 700% rebound in a month. After 3 days, the businessman moved to dogecoin again, but after that, its price closed at US $ 0.49.

What is the reason for Musk influence on cryptocurrencies?

In short, Tesla is recognized as the second largest buyer of bitcoins in the world. Tesla has reported that within its first quarter of transactions it sold US $ 272 million in bitcoins, which has given them a net profit of US $ 101 million.

Through his Twitter account, Dave Pornoy, the investor and founder of Bitcoin, has come to question Tesla, regarding the benefits the company has obtained from buying, inflating, and then promoting a rise and selling the bitcoins.

Musk has responded to this, stating that Tesla sold 10% of all its holdings within the cryptocurrency, in order to demonstrate the liquidity of bitcoin.

Musk's comments within the cryptocurrency market began to have a great impact within them, since 2019, however it has been accentuated after the purchase of bitcoins for US $ 1,500 million, made by the Tesla company, In addition, this is one of the many currencies that since March have been accepted for the purchase of it’s electric cars.

Finally, the reasons for which Musk uses his social networks to influence cryptocurrency, remain publicly unknown, although, the final product of this ends up being a clear and obvious ways of Musk, and Tesla, earning a lot of money because of it.