Industry News Elon Musk offers his support to Crypto Domain

Elon Musk offers his support to Crypto Domain

February 2, 2021

The weight that the personality and opinions of Elon Musk carry in the modern public discourse is huge. This billionaire investor and company manager is not only the richest individual on the planet but also someone who managed to do what very few extremely rich individuals can – he blended numerous industries and business ventures into his own personal space. Now, the entity that is Elon Musk is not only worth more than anyone else in the world but also has the ability and the willingness to expand his influence away from his chosen industries.

Today, he is using the same influence to push a global crypto narrative to new heights. With his support, the crypto space obtained another important, even somewhat controversial backing figure. At the same time, Musk’s take on the crypto field, bitcoin, and cryptocurrency in general also shines an interesting light which also carries many elements of the wider publics’ perception of not just cryptocurrencies, but also their influence on the real world.

Supporter of Bitcoin

The price of Bitcoin dropped recently on nothing more than a simple edit in the biography of a Twitter account. That account belongs to Elon Musk and it stated nothing more than a hashtag with the word Bitcoin in it. This alone was enough to send the price up drastically, even though for a short period of time. Musk elaborated further on his support saying that he believes in cryptocurrencies, and even that he finds a particular potential development really ironic.

Here, he directly referenced dogecoin, a cryptocurrency network that started its life basically as a running joke. Now, however, the same cryptocurrency is also gaining in price value as more and more people decide to invest in it. Musk said that it would be really ironic if dogecoin slowly became the cryptocurrency of the future and of the entire world. In that sense, he suggested the possibility of any cryptocurrency network gaining in price value and adoption up to a point of it would be a major if not a dominant financial system of the planet.

Late to the Party

While it is certain that Elon Musk is not a complete novice and an unknown name in the cryptocurrency domain he did clarify why his support comes a bit late. He said that he is somewhat late to the cryptocurrency party, sharing that he should have first bought bitcoin some 8 years ago. But at this point, he believes that bitcoin is a good thing which also makes him a supporter. The Tesla CEO referenced the fact that BTC market capitalization is very strong at the present moment. In his view, this is only the precursor of broader acceptance by the conventional financial establishment.

Once that happens on a wider scale, the potential of the Bitcoin network to exceed its present status in the financial ecosystem would only grow exponentially. However, must also say that he did not have a strong opinion on any other cryptocurrency. Interestingly enough this includes an ethereum network which is arguably the more capable setup for major technological breakthroughs. Yet, Musk did not mention it in his talk.

Institution Potential

The brother finance is not following Elon Musk’s statement very detailed just because he is very interested in social media. Instead, many are looking for an early sign of the possibility that his companies will invest money into cryptocurrency. So far, there have been plenty of hence that Tesla Motors Inc. is looking to buy bitcoin and move some of its liquid funds into cryptocurrency. 2020 shows that institutional investment is probably the most important reason by the present bitcoin bull run is ongoing.

Any chance of Tesla doing the same early on in 2021 would almost certainly continue this strength in the best possible manner for the crypto investors. That means that other companies, even those that are not working in the very advanced technology of the main, would begin considering turning some of their cash into crypto. Furthermore, a lot of Boards of directors would be under pressure from stockholders to do the same, if for nothing more than for the off chance crypto would explode in terms of price once again. Essentially, Tesla’s cryptocurrency investment food kick starts a whole new round of fears of missing out in the institutional arena.

WallStreetBets World

All of this, like so many other developments in the cryptocurrency community and the wider ecosystem, is first and foremost very exciting. Similar to esports, social media, and many other contemporary domains, Elon Musk is no stranger to drawing attention and utilizing the same attention for his goals. Something very similar is at play right now and there is again that strong sense that any story that Elon Musk covers becomes sooner or later about Elon Musk. So, it is very much possible that he is simply trying to drum up support for an eventual cryptocurrency investment that one or more of these companies would make in the near future. But, even with that in mind, there is a strong sense that the overall financial climate is changing towards unpredictability and volatility.

The entire wallstreetbets phenomenon underlines this concept. As more and more people are willing to invest their money into endeavors that are more akin to mob flash memes than any traditional financial investment, the support of Elon Musk that immediately drives the price up is also completely normal. Yet, there is also a clear narrative of how the same fun party can turn problematic very quickly for everyone involved in it. That would include not just losing their money, but also getting broiled in financial transgressions. Looking for sustainability in the kind of world, even with the support of huge names like Musk’s, is practically impossible. But, no matter how outdated sustainability and stability might look like in wallstreetbets world, they are still the bedrock of any successful process. Bitcoin is and will be no different in that regard in the long run. Because of this, the endorsement of Elon Musk could ultimately be a bad piece of news for the crypto domain.

Source: Coindesk