Elon Musk, the CEO of SpaceX and Tesla, has always shown his interest in cryptocurrency by using social media, particularly Twitter. He is a crypto enthusiast who expresses his views on crypto through the help of Twitter. Whenever Elon musk expresses opinions on crypto, the market reacts to them as he has a massive following on Twitter which is almost 55 million. People usually get influenced by his tweets, and the crypto world indirectly starts doing amendments as his tweets hit the functioning of cryptocurrency.
The crypto world is a decentralized industry as it is its principle that the market will not get influenced by anyone’s influence or ideology. Still, Elon Musk’s tweets indirectly affect the market system of cryptocurrencies. He always had a love-hate relationship with cryptocurrency. In the start, he loved it and then endorsed it and then gave some points to keep in mind while investing in cryptocurrency.
Does all this say that Elon musk solely holds the power of influencing the movement of the crypto market? Further, you will get the answer to this question.
How Does Elon Musk Influence The Crypto World?
People got to know about Elon Musk’s interest in crypto when he announced from his handle that Tesla bought coins worth $1.5 billion. This gave a massive boost to the cryptocurrency, making it reach greater heights and historical highs soon afterwards. Due to this, the cryptocurrency rose by 20 percent in a single day. This was also known as the ‘Elon Musk’ effect on the digital currency market.
This was not only the single tweet that has flustered the investors or the digital platforms; many tweets have fluctuated the cryptocurrency in innumerable ways. He has unknowingly made some of the currencies so successful that no one can ignore that fact by his single tweet. For instance, the Floki Inu coins rose by 1000 percent, and within three days, the currency has increased over ten times as per the original value.
As mentioned above, when Elon announced that they had bought bitcoin, it rose by 20 percent within a day. Another currency that has experienced the massive fluctuation of their currency was Dogecoin; it has witnessed a tremendous jump in the value of the coins as it jumps to 50 percent in a day. Furthermore, Dogecoin should be thankful to Musk as, because of its tweets, Dogecoin has seen a phenomenal jump of 15,000 percent only in a year.
All this information shows how much the crypto world revolves around Elon Musk. It would not be an exaggeration to say that he has the power to make the cryptocurrency or even break it, which should not be happening as cryptocurrency does not work in a centralized manner. Still, all this proves that somewhere, Musk is a centralized body.
Have Elon Musk Tweets Negatively Impacted The Cryptocurrency?
After showing obsessive interest in cryptocurrency, Tesla’s owner gave a statement that dreadfully affected the crypto world. He said that Tesla would no longer accept bitcoins because of environmental concerns. He added that he is concerned about the continuous mining activities for fossil fuels depleting natural resources. He admitted that bitcoin is a really good idea and investment that helps get the best returns, but at the same time, it affects the environment.
After expressing his views on the environmental effects of cryptocurrency, it highly affected the cryptocurrency as it experienced a loss of 27 percent after the official announcement, and in particular, bitcoin gradually fell by 10 percent. Another one was Dogecoin which had to go through the bad phase of losing 20 percent in that specific time. Ethereum was also plunged by around 30 percent but soon recovered its valuability because of the virtue of its immense size.
All these instances show how Elon Musk primarily influences cryptocurrency; one tweet can help the cryptocurrency achieve the milestone or experience the downfall. Both Dogecoin and Bitcoin have experienced both the good and bad effects of Elon musk’s tweets as the thinking and viewpoint of Musk largely influences people. This has helped the currencies grow and experience the negative impacts that come with it.
Does Elon Musk Still Have An Influence On Cryptocurrency?
In the start, the people were highly influenced by Elon Musk’s viewpoint on cryptocurrency and were basically moving in the footsteps of him, but recently the cryptocurrencies have got their prominence, stability and credibility. Now it is pretty visible that people have gained trust in cryptocurrency. They have realized that the single tweet should not be the reason for not buying and selling the cryptocurrency and to stay away from trying the profitable digital currency that gives impressive returns and helps get a digital asset.
Cryptocurrency has seen meritorious growth in recent times not only because of the reason it has been in vogue that has attracted a lot of new investors but also because of how safe and user-friendly it is and offer potential investors exemplary benefits.
It might be a little hard to ignore the views of a person who has immense influential power and holds credibility in the business and trading world. Still, it seems like people no longer get manipulated with Elon Musk’s tweets as cryptocurrency has laudable pros that are hard to be ignored, and this has helped regain the trust of the investors.
The Takeaway:
Cryptocurrency is highly volatile, and it is one of the disadvantages that might little trigger anyone. Extreme volatility is both an advantage and a disadvantage as it helps to enable intense growth in the value of cryptocurrencies and even help to achieve great heights.
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