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Elon Musk Investing Billions Into Bitcoin and Supporting Dogecoin

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Elon Musk Investing Billions Into Bitcoin and Supporting Dogecoin

Over the years, the world has witnessed incredible advancement in technology, and the financial sector has not been left behind. With the introduction of cryptocurrency, we can now transact and buy goods and services using a decentralized system. Decentralized systems are more secure, and they eliminate intermediaries, therefore, making your transactions faster and smoother.

Who knew that cryptocurrency that began as a joke could gain the interest of one of the richest men in the world? Although this seems unlikely, it is precisely what happened when Elon Musk, the CEO and co-founder of Tesla, repeatedly showed interest in dogecoins. Because Elon Musk is a respected businessman, people are bound to notice when he tweets about something.

Surprisingly, Dogecoin is not a new cryptocurrency, but it was introduced in 2013 after a viral meme. The meme featured a perpetually surprised Shiba Inu dog with very poor English, thus doge instead of a dog. When Billy Markus and Jackson Palmer created dogecoin, they intended to create a faster fun-filled alternative to bitcoin. Therefore, you cannot buy much with it, and it is also hard to convert it to cash.

Due to those reasons, dogecoins have not been popular until recently after famous people tweeted about them. As a result, the cryptocurrency’s price increased, and it even crossed $10 billion in market value.

Is Elon Musk Supporting Dogecoin?

Elon Musk has not announced whether he or his company is planning to invest in dogecoin. However, he has made several tweets that made his followers speculate that he was endorsing dogecoins. A single tweet from him reading “one word: doge” led to a 20% spike in the prices of dogecoin

It is important to note that it was not the only time that the billionaire caused a spike in the prices of dogecoins. Dogecoins prices spiked by 800% when he posted a fictional Doge magazine. However, when he was interviewed, Elon Musk responded that his tweets about dogecoins were mere jokes.

Although Elon Musk is a respectable businessman, he is also a human being, and thus, like everyone else, he may just have been enjoying the memes. This did not deter his followers from investing in the coins as they saw it as him endorsing the cryptocurrency.

What Did Elon Musk Say About Dogecoin?

Like we mentioned earlier, Elon Musk has tweeted several times concerning dogecoins. Each time he tweets something related to dogecoins, the price of the coins increases, and his followers invest more in the cryptocurrency.

At one point, the billionaire tweeted about doge coins being the people’s currency saw the currency’s value improve by 75%. Additionally, when Musk captioned a painting “doge barking at the moon,” it also led to considerable improvement in the value of the coins.

Although Musk’s tweets lead to a considerable increase in the value of dogecoins, it is also making investors worried. The reason that the same way his tweets raise their value can lead to a bubble; this leads to worry and concern about the future of cryptocurrency.

Which Cryptocurrency Did Elon Musk Invest In?

When the frenzy about cryptocurrencies began, many prominent companies and individuals held back. Even ordinary people did rush to invest in the currency for fear of it being a scam or a bubble that could fade with time. However, when cryptocurrencies overcame the test of time, people started investing in various types of cryptocurrency.

Elon Musk has not shied away from the debate about cryptocurrencies as he often tweets about various of them. Additionally, he announced that the Tesla car company, which he is a co-founder of, has invested in bitcoins, and he also invested in Dogecoins for his son.

Does Elon Musk Own Bitcoin?

To be among the richest men in the world requires you to be an outstanding investor. One wrong investment can cause you losses amounting to millions of dollars. Thus investors take their time to study opportunities and market trends before investing their money.

Elon Musk recently announced that Tesla has invested in bitcoins and that the company is considering accepting bitcoins as a form of payment in the future. Although the company did not give a specific time, they will start accepting the cryptocurrency; this is still positive for bitcoin.

For starters, the company got the endorsement from a well-renowned company, thus encouraging other people to invest in the currency. Besides, this is also a positive sign that cryptocurrencies are becoming a force to be reckoned with. Coming from a wealthy established business is an encouragement to ordinary people to start investing in cryptocurrencies.

How Much Did Elon Musk Invest In Bitcoin?

Elon’s company invested the sum of 1.5 billion in bitcoins. It was one of the most significant investments by a mainstream corporation. Also, this made the value of bitcoins rise past $44000 within a brief period.

As human beings, we are very likely to observe those we consider as mentors. Thus, when a big successful business invests in bitcoins, people are bound to notice and follow suit. Therefore, Elon Musk endorsing bitcoin and even investing in them encourages his followers and business rivals to reconsider their decisions.

Should I Buy Dogecoin 2021?

Unfortunately, currently, dogecoins cannot help you with your daily transactions. The reason is that there is a minimal number of establishments that accept dogecoins as a mode of payment. However, cryptocurrencies’ value improves over time, and they are gaining wider recognition.

So, it may be an excellent investment to buy dogecoins and sit on them as you wait for their value to increase. Additionally, it is also possible to convert dogecoins to cash if you feel like the investment isn’t worth your time.

Summing up

Although dogecoin is not in the same league as other cryptocurrencies, its value has increased significantly recently. Therefore nobody really knows how dogecoin cryptocurrency will be in the near future. However, if recent developments are an indication investing in dogecoins is a good idea. Lastly, it is essential to conduct thorough research before deciding to buy any cryptocurrency and remember that cryptocurrencies are volatile.