How a Series of Elon Musk Tweets Helped Lead Investors to Dogecoin, a Meme-Inspired Cryptocurrency Worth 4 Cents
February 1, 2021 3 min read
“One word: Doge.”
In December of 2020, tweeted this simple statement, alluding to the Shiba Inu-themed digital coin, which started as a joke and which, as of closing on the day of Musk’s tweet, was worth all of 0.4569 cents. It wasn’t even the first time Musk had tweeted about . In July, he tweeted this photo:
Despite support from one of the biggest business names in the world, Dogecoin failed to hit even 1 cent in 2020. That changed early on in 2021, as the crypto doubled in value from January 1 to January 2, reaching a value of 1.1427 cents at closing. However, over the past couple of weeks, the has been swept up in the deluge of investments inspired by Reddit’s WallStreetBets and the crypto-based SatoshiStreetBets, named after Satoshi Nakamoto, the presumed pseudonym of the bitcoin developer(s).
The crypto spiked from 0.7432 cents on January 27 to 5.1793 cents on January 29, before falling back to 3.9943 cents as of the time of this writing. Even that lower number represents a 437% growth in just a week, as more and more investors pour in and urge one another to “hold the line” and take Dogecoin “to the moon.” Of course, no one has been more thrilled about Dogecoin’s rise than the man who said way back in April of 2019, “Dogecoin might be my fav cryptocurrency. It’s pretty cool.”
However, Mike Winters at Lifehacker notes that there’s a significant difference between investing in Dogecoin and the short squeeze related to stocks like GameStop and AMC. The latter, he says, were “an opportunity to stick it to Wall Street while also making some money on the side. It actually makes sense as a trade, albeit a risky one.”
Dogecoin investment is different, in his opinion. He claims enthusiasts are simply bolstering the crypto’s value for fun, hoping to hold their positions until it reaches Reddit’s goal of $1. “In fact,” Winters writes, “there’s no particular reason why Dogecoin would be worth buying, aside from the fact that it’s basically Bitcoin named after a meme.”
If Musk has his way, though, maybe memes will be enough. He’s previously told news outlets that the most entertaining outcome would be if Dogecoin became the currency of earth in the future, explaining that while it may have started as a joke, “Fate loves irony.”
Bitcoin on the Verge of Mass Adoption, Says Elon Musk
Elon Musk, the richest person on the planet, said that Bitcoin is currently on the verge of a broad acceptance by the conventional finance people. The world’s largest cryptocurrency is now trading above $34,000.
During a conversation on an invitation-only audio-chat social networking app, Clubhouse, Musk said that he is a little late to the Bitcoin party, but he fully supports the cryptocurrency. The Tesla Founder added that he occasionally makes jokes about Dogecoin, but the concept behind Bitcoin is innovative and attractive.
“Bitcoin is a good thing, I occasionally make jokes about Dogecoin but that’s because Dogecoin was made to make fun of crypto assets. The most ironic outcome would be that Dogecoin becomes the currency of earth in the future,” Musk said.
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The recent comments from the CEO of SpaceX came after he updated his Twitter profile with the addition of the Bitcoin tag. The world’s largest cryptocurrency jumped from $32,000 to $38,000 within a few hours of Musk’s update. Bitcoin added nearly $100 billion in its market cap during the rally.
Bitcoin Price Action
Bitcoin and other cryptocurrency assets have a history of showing strong reactions to the comments from Elon Musk. In December 2020, Musk said: “One word: Doge” to tease the crypto community. The cryptocurrency jumped more than 25% following his tweet. The difference between his previous tweets and the recent announcement is that this time he expressed his full support for Bitcoin and termed it as a good thing. BTC price experienced a volatile start of 2021, the cryptocurrency registered an all-time high of $41,500 earlier this month but dipped below $30,000 on 27 January. The price of the world’s largest crypto asset is currently consolidating above $34,000.
2021 has seen a significant increase in demand from retail investors. Musk added that Bitcoin adoption will increase in the coming months due to acceptance by the conventional people involved in the financial markets.
Billionaire Elon Musk Leaves Twitter For A While Causing Fun Speculation
The huge number of fans that Elon Musk has makes the reactions to any action on this social network countless.
However, in the last few hours, Elon Musk has announced that he is leaving Twitter “for a while,” and that has led to some fun reactions. Here’s some examples:
“Got it Elon. I’ll take it from here. People of Earth, Elon has returned back to Alpha Centauri. Your planet has regrettably been scheduled for demolition. The process will take slightly less than two of your Earth days. Thank you. PS: Don’t panic.”
Got it Elon. I’ll take it from here. People of Earth, Elon has returned back to Alpha Centauri. Your planet has regrettably been scheduled for demolition. The process will take slightly less than two of your Earth days. Thank you. PS: Don’t panic. — Lex Fridman (@lexfridman) February 2, 2021
“He came, he saw, he conquered, and found there was no intelligent life on this planet”
He came, he saw, he conquered, and found there was no intelligent life on this planet — mike rooke (@mikerooke6) February 2, 2021
“Error: Insufficient memory to continue the execution of the program. Factory reset initiated.”
Error: Insufficient memory to continue the execution of the program. Factory reset initiated. — 🥀 (@DomAngwood16) February 2, 2021
This is just a small sample of the number of tweets that hint that he has gone to Mars, with others referring to The Hitchhiker’s Guide to the Galaxy (as if Elon were a dolphin fleeing the planet), others state that he is implanting Dogecoin on Mars (the cryptocurrency he joked about a short time ago) and much more.
It is curious to see how most see Elon Musk as an Alien or as a robot. His light-hearted tone, his sometimes non-contextual comments, and his #1 ranking as the world’s richest man make him truly a “different” human being.
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