Moctar BouraimaTesla CEO Elon Musk has established himself as a true "guru" in the world of cryptocurrencies. He earned this title by having a strong impact on the price of the dogecoin and bitcoin as well. They say it blows rain or shine on Twitter.
The first time we noticed his " influence", it was when he published on Twitter in March 2021 that the Tesla company was going to accept payments in bitcoin. He had outbid following Michael saylor saying that Tesla treasury had purchased bitcoins worth $1,5 billion.
Following these various publications showing his interest and support for Bitcoin, the crypto community established him as a true crowd leader. Each of his tweets could propel the price of a cryptocurrency in just a few hours. It is this phenomenon that we refer to as “ Elon Musk effect » in the crypto universe.
It is also the purpose of this article to show how Elon Musk has significantly influenced the history of cryptocurrencies. We will also discuss the limits of such adoration on the part of certain members of the crypto community.
The Elon Musk effect
In February 2021, Elon Musk declared for the first time that Tesla had purchased $1,5 billion worth of bitcoins. The cryptocurrency then increased by 20% in a single day. A month later, he also indicated that Tesla would now accept bitcoin payments. As a result, the value of the cryptocurrency reached an all-time high of $69.
However, the influence of the Tesla boss's tweets (and twitter) didn't stop at bitcoin, it also started the same trend for Dogecoin. Indeed, Musk declared on February 4 that “ Dogecoin is the people's cryptocurrency ».
This claim led to a rapid 50% increase in the price of the currency. In total, the value of Dogecoin increased by 15% in one year thanks to Elon Musk's supportive tweets.
After pumping bitcoin at will, the electric car tycoon then turned around. According to his allegations, Tesla will no longer accept bitcoins due to its environmental concerns.
For good reason, the businessman said he was worried about the sharp increase in the use of fossil fuels for mining bitcoin. According to Musk, the bitcoin has a future, but it seems far too costly for the environment. The cryptocurrency suddenly crashed, with its value almost immediately falling by 10%.
Elon Musk considered a Tech guru
Elon Musk has an impressive entrepreneurial history, with the creation of iconic companies like PayPal, Tesla and SpaceX. Known as a techno-solutionist, it is highly appreciated by people who share this same philosophy. This consists of "believing" that Science and technology could solve important solutions for humanity and make the world a better place.
Sahil Gupta, a SpaceX intern, made the disturbing revelation thatElon Musk is actually the famous Satoshi Nakamoto. Gupta bases his suspicions in particular on the facts that Satoshi and Musk have several characteristics in common.
For example, they use several similar words and both have mastered the C++ programming language. Apart from these aspects, both protagonists have the habit of frequently using a "double space after a period".
However, Mr. Gupta acknowledges that his allegation is not supported by any concrete evidence. As for Elon Musk, he firmly denied having participated in theinvention of bitcoin.
Furthermore, it is still obvious that Elon Musk has constantly followed the development of blockchain and cryptocurrencies sector. Although he is not Satoshi Nakamoto, he nevertheless demonstrates a strong interest in this technology. Additionally, none of the many digital assets available in the cryptocurrency market have piqued Musk's interest as much as DOGE and Bitcoin.
Relationship between Dogecoin and Elon Musk
Dogecoin is a crypto originally created as a joke by two computer scientists. Its aim was to support charitable actions before evolving into a cryptocurrency essentially identical to the others.
In short, it all started with a joke made by an Australian developer named Jackson palmer. In a tweet, he wanted to make fun of the popularity of cryptocurrencies and published for the first time what would become Dogecoin. Created in collaboration with Billy Markus, Dogecoin is represented by Shiba Inu, who was a even Reddit and Twitter known as Doge.
The joke having taken a more serious turn, they later launch Dogecoin as a legitimate cryptocurrency. At the same time, they also set up a foundation to raise funds and donate them to charitable projects.
Musk's baptism into Dogecoin came in 2019, when he posted his first tweet about the coin. He claimed that the DOGE was his favorite cryptocurrency, doubling its price in just 72 hours.
Following this performance, Elon posted numerous memes with the recognizable face of the Shiba Inu. Also, he admitted to having worked with programmers to improve the network since 2019.
Today, DOGE price gets a boost meaningful every time Elon mentions it. And Musk's help with this crypto doesn't stop there. Tesla has recently accepted payments in Dogecoin for its official products.
The acquisition of Twitter
Some people say that it is since his consecration as a "guru" in the crypto community that Elon Musk has become interested in the Twitter network. When he announced the takeover of Twitter, popularity of cryptocurrencies experienced a real boom. This gave rise to favorable days for cryptocurrencies, strengthening their credibility. However, the crypto that has benefited the most remains DOGE, whose value has continued to grow since then. Above all, she received the support and approval of a highly appreciated figure in the world of Tech.
According to rumors, Elon Musk may integrate cryptocurrency exchanges on Twitter. However, this is all very speculative and vague. In reality, Elon Musk never made an announcement confirming such a change on Twitter. The changes that the new owner wants to make are more related to moderation and freedom of expression.
The general criticisms made against Elon Musk
From the first tweets where Elon Musk mentioned Dogecoin, some people who claim to be " Bitcoin maximalists " were outraged by Elon Musk's choice. They criticized the guru for making so much noise about a cryptocurrency known as a joke. It was already there, making harmful publicity for cryptocurrencies, which already suffered from a lack of credibility. Some members had even organized an event " Fuck Elon " to criticize his positions.
Some then accuse Elon Musk of not having a great culture and knowledge of cryptocurrencies. As such, it is considered by many to be the worst crypto influencer ever.
Indeed, unlike other "influencers", Elon Musk has powerful credibility and the means to influence the choice of the crowds. This influence could have been used to make Bitcoin more known than Dogecoin, for example.
Charges of "insider trading"
In June 2022, a Collective action was conducted and could cost Elon Musk more than $258 billion. He allegedly appeared on prime-time shows such as NBC's "Saturday Night Live" in an attempt to manipulate the price of Dogecoin.
The trial is ongoing and he is still the target of accusations of having become a crypto influencer who allegedly caused dogecoin investors to lose a lot of money…
Recently, he replaced the Twitter logo with the Dogecoin logo for a few hours, which led inexorably to a rise in the price of dogecoin before it collapsed again.
However, Elon Musk has always shown support but has never explicitly stated that the cryptocurrency will increase in value. Presumably, it was investors who made projections and interpretations.
-Read the article : They went broke with crypto: Here are the worst confessions of crypto investors
Elon Musk, the shepherd and the sheep
Elon Musk's relationship with bitcoin, Dogecoin and other assets has had a substantial impact on the evolution of cryptos. Perhaps even the enthusiasm would have been less without his various pro-bitcoin publications.
Although it has sometimes caused conflicts within the community, it remains undeniable that it has played an important role in the wave of enthusiasm among individual investors for cryptocurrencies.
However, it is important to put things into perspective and not naively follow the words of personalities we like.
As great as Elon Musk is, he doesn't know everything and can be wrong. Human beings' capacity for idolatry is actually the real problem. Indeed, it is not so much the shepherd's problem as the sheep's problem.
By the way ...
---
This is not investment advice. Always do your own research. Only invest amounts you are willing to lose.
To buy cryptocurrencies (simple way):
- Public chat Binance (Complete crypto trading platform)
Generate interest on your cryptocurrencies:
- Public chat Youhodler (Earn up to 12% interest)
To secure your cryptocurrencies:
To have fun and play
- The best for Esport and sports betting: CloudBet
[…] Elon Musk, accused of having manipulated the market: A guru in spite of himself? […]