With the management of Tesla, SpaceX, Boring Co and Neuralink, the multi-entrepreneur and billionaire Elon Musk is apparently not yet fully occupied. After occasionally commenting on cryptocurrencies in the past, he began to show more public interest in it towards the end of 2020. Earlier this month it was also announced that Tesla had invested $ 1.5 billion of its reserves in Bitcoin, and Musk wrote partly cryptic, but mostly positive, about the alternative Dogecoin on Twitter. It was created as a bitcoin parody, but Musk seems to have serious plans for it – and even wants to launch its own cryptocurrency if necessary, as he wrote on Monday.
Update: First of all, Musk continued to give the original Bitcoin a boost. When the Tesla investment became known (combined with the news that Teslas could soon be paid in Bitcoin), a new steep rise in the cryptocurrency began, which has continued almost unchecked since then. On Tuesday, its price jumped the $ 50,000 mark in early US trading for the first time – while Tesla shares themselves again posted slight losses.
Tesla boss with Dogecoin memes
The latest wave of Musk news about cryptocurrencies on Twitter began in the second week of February, after Tesla’s investment in Bitcoin was known. More often than about the original, however, he wrote about the much less well-known alternative Dogecoin. Some time ago, the Tesla boss published one of his Twitter memes about it: An avalanche with the dog’s face, which serves as a symbol for Dogecoin, overran a settlement that Musk labeled “global financial system”.
That was in July 2020 and was probably only understood by the toughest crypto supporters as a sign of serious intentions by Musk in this area. Last week, Musk reported that he had bought some Dogecoins for his child born in May 2020 with the famous musician Grimes. That also sounded more like a joke, especially since it was garnished with a meme play on words (“toddler hodler”). Two days later, however, the Tesla boss declared that Dogecoin was underestimated, which sounded more serious. In between he pointed out that he (as the founder of the PayPal predecessor X.com) had quite a bit of knowledge of the financial industry.
Last Sunday, Musk finally offered large Dogecoin owners to buy them out – for real dollars if they wished. He had previously stated that he was bothered by the high concentration of the holdings of a few people in this alternative cryptocurrency. Not only was it kidding, concluded a Twitter observer, but also seeing real potential for Dogecoin to become the leading currency on the Internet. “Absolutely,” agreed the Tesla boss frankly and without any noticeable irony.
As of Monday, he even went one step further in the ongoing discussion. Another Twitter user suggested that Musk develop his own cryptocurrency called ElonCoin. He should then propose an exchange to small Dogecoin owners so that he does not have to make the few big ones even richer. “Only if necessary,” was Musk’s reply.
The Tesla and SpaceX boss made it clear for the first time that he is also ready to develop his own cryptocurrency if he considers it necessary. At the same time, he made it clear that Dogecoin remains his favorite among the existing ones. The fact that Tesla has instead invested in the original Bitcoin can be explained by the fact that its market capitalization is already in the high three-digit billion range – a position of 1.5 billion dollars in Dogecoin could hardly have been achieved without an extreme price increase. That was also the case with Bitcoin, but only after the news of Tesla’s entry.
Why Musk considers the promotion of cryptocurrencies to be necessary at all remains largely in the dark. But the latest Twitter fireworks display, including the hint of a possible currency of its own, suggests that there is more to Tesla’s Bitcoin purchase than a mere whim or marketing idea from Musk.