If you do not know who Elon Musk is, you are pretty much living under a rock.
Currently, the world’s rich person with a net worth of a whopping $182.8B. Often deemed as a little crazy by his competitors, Elon Musk’s stance on Bitcoins has been quite baffling. He has always been very vocal about the things he prefers without caring about others’ feelings.
Elon Musk is a huge fan and top-notch futuristic technology, but when it comes to Bitcoins, there have been times when he openly supported it, and there have been times when he made fun out of it. This makes it pretty hard for the investors to know which side he is on.
Elon Musk’s Love and Hate Relationship With Bitcoins
Like I already mentioned before that Elon Musk has been very vocal about Bitcoins. Investors seldom want to know how much Bitcoins he holds. In early 2018, Elon Musk made a statement on Twitter. In the words of Elon Musk, he owns only .25BTC, and that too was gifted to him by his friends.
He made this statement when he came to find out that many imposters posed as him and traded Bitcoins. He did that to prevent fraudulent activities from taking place in the crypto space.
Musk’s Latest Stance on Bitcoins
Recently Musk updated his Twitter bio mentioning “Bitcoins.” This set a bullish market of Bitcoins. The price of Bitcoins skyrocketed to a staggering $38,000 from $32,000. This is, in fact, a good example of how just a few actions by a billionaire can swing the crypto market from left to right.
I am a crypto investor myself, and I have been investing in cryptos, Bitcoins in particular, for the last three years. click here to know more about Bitcoins. As far as I can tell, Elon Musk is going to stick with his current stance on Bitcoins, especially when the price of Bitcoins is soaring for the last ten months.
3 Reasons Why Elon Musk Has Started Supporting Bitcoins
There are numerous reasons for this, but for the sake of convenience, I am going to list down only 3.
Bitcoin use Blockchain
Blockchain technology is the most sought after technology in the world right now. Bitcoins and all other cryptocurrencies work on Blockchain technology. Many major Business organizations are on the verge of implementing Blockchain technology into their networks.
A handful of organizations related to the healthcare industry have already made plans to implement blockchain by the end of 2021. The reason why Blockchain technology is in demand so much is that it provides transparency as it stores data in a distributed public ledger.
Not only did the coronavirus pandemic take a toll on the lives and livelihood of people in general, but it also totally destabilized the Bitcoin market. Due to the nationwide imposed lockdown, the value of Bitcoins crashed down to $3,000. Investors thought it was the curtain call for Bitcoins.
They panicked and started selling off their Bitcoins at low prices. But investors with a good amount of knowledge of the crypto market knew the potential that Bitcoin carried and refused to give up. They saw this as a perfect opportunity and made full use of it.
A handful of investors started buying Bitcoins in lots at a low price. The others soon started following this trend. This made the prices of Bitcoins soar, and it is soaring to date.
Release of Stimulus Packages by the U.S. Government
The Government of the States has constantly been releasing Stimulus Packages to aid the people affected the most during the imposed lockdown and pandemic.
While this is undoubtedly a wonderful gesture by the Government but it also led to inflation and severely weakened the U.S. dollar and the economy. This is the reason why people had been investing more in Bitcoins for the last ten months because fiat currencies are prone to inflation.
Previously Musk’s indifference in regards to Bitcoins was quite shocking for his fans as many big crypto investors held in high regard thinking that he was a big bull in the crypto space.
But since Musk has openly admitted that he truly believes in Bitcoin’s potential by updating this Twitter bio, it was a huge relief for crypto investors.