Ever since Elon Musk decided to change his Twitter bio to #bitcoin, the cryptocurrency seems to have gotten a lot more attention. Shortly after the dramatic rise and fall of GME stock, the popular engineer tweeted that “in retrospect, it was inevitable”, referring most likely to a need to create a system based on decentralization and transparency instead of divisibility and lack of regulatory clarity.
While his #bitcoin status lasted just a few days, it was enough for people to purchase Bitcoin in hopes of its future appreciation. However, the behaviour of musk seems rather contradictory ever since then, and some could even say that there are unseen forces at play. Forces that observe his tweets and even control them, making him “fight back” using humorous and often confusing tweets.
Dogecoin is a joke, and probably so are Elon’s tweets
Over the past month or so, Elon Musk has been repeatedly tweeting about Dogecoin, a cryptocurrency with no utility or purpose, as stated by its creator Billy Marcus. The cryptocurrency has seen extreme volatility due to these tweets, and many retail investors have lost money trying to bank on public sentiment.
But why exactly is Elon Musk doing this? From an intelligent investor’s point of view, it could be “payback” to those who repeatedly try to control his tweets, claiming that each written word will likely have consequences in the market. It could also mean that he still sees the crypto markets as a joke, which could further explain the memes he keeps on posting. There could also be a small chance that he actually likes and believes in Dogecoin, but the chances are very slim, unlike most Doge investors are hoping for. It’s safe to say that Elon’s tweets do not aim to promote Dogecoin, but rather make fun of it, just like it was meant to be used in the first place.
Elon Musk likes Bitcoin, but he doesn’t get too attached
In a recent Clubhouse interview, Elon Musk mentioned that “I need to be careful what I say here” when he was asked about Bitcoin. After all, he is a celebrity, and every tweet could move the needle of the Bitcoin price. He continued “I like Bitcoin” pointing out that it is an interesting technologic development, but doubled down that he only owns a small fraction of it.
Naturally, Bitcoin maximalists saw this interview as a “permission” to invest more in Bitcoin, and have since been trying to convert Elon into a Bitcoin fan. In recent times, the engineer mentioned that Bitcoin may be a little bit better than cash, but its price does seem high at this moment. This tweet came after Tesla had already announced their purchase of $1.5 Billion worth of BTC.
Tesla’s choices are not Musk’s choices Shortly after Tesla decided to allocate a part of its cash reserves into Bitcoin, we saw prominent crypto figures discuss how Elon Musk had embraced cryptocurrency. The sentiment may have been justified based on the company’s actions, but Elon made sure to point out that his company’s actions were not his own, replying to a livestream of Changpeng Zhao .
That said, BTC & ETH do seem high lol— Elon Musk (@elonmusk) February 20, 2021
We are still unsure whether Elon Musk will become a vocal proponent of Bitcoin, much like we have seem with other entrepreneurs of his stature. The unseen forces at play Much like most important personalities, there certainly is some sort of unseen force that tries to control and manipulate tweets of “celebrities” in order to avoid purposeful market manipulation. This issue was most likely observed when Musk made his Bitcoin position more vocal. But Elon is not one to conform it seems.
To be clear, I am *not* an investor, I am an engineer. I don’t even own any publicly traded stock besides Tesla.— Elon Musk (@elonmusk) February 19, 2021
However, when fiat currency has negative real interest, only a fool wouldn’t look elsewhere.
Bitcoin is almost as bs as fiat money. The key word is “almost”.