Elon Musk is a renowned entrepreneur and one of the world’s most popular visionaries. His innovative business ventures have been credited with transforming not only the way we use technology, but also the way it is perceived. While his many accomplishments, from Tesla to SpaceX, are often the focus of news reports, it might surprise some readers to know that Musk is also deeply involved with the world of cryptocurrency. Despite his celebrated career, many curious investors and onlookers still remain unclear regarding the cryptocurrency that Elon Musk has to offer.
One of Musk’s more prominent monetary investments is Bitcoin. The digital token, which currently holds the highest market value of any other cryptocurrency, remains popular due to its decentralized nature and lack of government authority. With that being said, while Musk has made it known that he is a proponent of cryptocurrencies, he is not necessarily a fan of Bitcoin. Recently, Musk has expressed his preference for other forms of digital currency such as Dogecoin. Musk considers Dogecoin, which is based on a popular internet meme, to be much more practical, claiming that it has a “real potential” and has stated that even the “greedy clowns” found in traditional banking will not be able to resist its utility.
It is also worth noting that Musk’s revolutionizing approach with Tesla has also included a move to accept digital payments. With Musk’s self-described mission of “accelerating the world’s transition to sustainable energy”, Tesla has made strides in accepting cryptocurrency as payment for their electric vehicles. As such, buyers of Tesla cars have the option to purchase their vehicles with Bitcoin, Ether, and currently even Dogecoin.
To the delight of many tech enthusiasts, Musk recently announced his intention of launching a cryptocurrency named ‘ElonCoin,’ which he plans to personally oversee. It is unclear what role Musk intends to have with the new coin as he has yet to disclose any details pertaining to its structure, purpose, or even its value. Judging by his track record with innovating technology, a coin associated with Musk could be something big.
Musk’s presence throughout the cryptocurrency world has the potential to influence the digital money market significantly. While some analysts are predicting that ElonCoin may soon become the world’s most popular cryptocurrency, many skeptics remain unconvinced of its success. Regardless of the outcome, investors, digital money pioneers, and tech aficionados around the globe will be closely monitoring the situation.
Consumer Adoption
Beyond the primary concern of digital asset speculation and trading, Musk’s influence regarding cryptocurrency can also be seen in the mainstream adoption of digital asset usage. Since 2014, consumers have been able to use products and services spanning the range of retail to the public sector with cryptocurrency.
In more recent years, the growing proliferation of cryptocurrency adoption has been further driven by platforms such as Elon Musk-backed mobile app Bitcoin Pod. A secure mobile wallet used for payments within stores and peer-to-peer transfers, the app enables consumers to buy, sell, and spend their cryptocurrencies. With the launch of their new loyalty program, Bitcoin Pod is aiming to build a network of stores and vendors where customers can buy their goods and services with digital tokens.
In response to this movement of digital currency adoption, a number of other platforms such as PayPal, Apple Pay, and WeChat have all announced their interest in accepting cryptocurrency as a form of payment. While it remains unclear whether other tech giants will join Elon Musk in exploring digital currencies, the proposal has been met with enthusiasm by the crypto community.
Musk has also had talks with Bitcoin mining software company Blockstream to investigate whether larger companies like Tesla could use its products to mine Bitcoin. It is speculated that if successful, the partnership could result in a new network of large-scale corporate miners that would increasingly promote the adoption of blockchain technology.
Fluctuating Prices
It’s no surprise that most investors involved in the crypto world will have a keen eye towards the prices of digital assets. With Musk’s crypto moves, it is possible to see an immediate effect on the market, often resulting in the prices of cryptocurrencies to decrease or increase rapidly. This could be attributed to his renowned status as one of the world’s most influential figures, making it common for analysts and investors to take cues from his tweets and announcements on the future of cryptocurrency. While he has come under scrutiny for his ability to crash prices and manipulate the market, Musk is largely seen as a key proponent in expanding public interest towards cryptocurrency.
Tesla’s decision to not only accept but also actively embrace digital monetary payments has also played a key role in stabilizing the prices of their stock. Tesla made public its purchase of $1.5 billion of Bitcoin and has stated that it will use the digital currency in its financial resources. Moreover, the company indicated that the purchase of Bitcoin has the potential to generate more revenue than traditional investments. Tesla’s position in the industry has seen a significant boost and the company’s stocks have risen by an impressive 400% since the announcement of their bitcoin holdings.
Seemingly in response to the rise in Tesla’s stock prices, Musk took to Twitter with a simple message of “#Bitcoin,” which resulted in a massive surge of purchases from investors, leading to the share price rising by 7.5%. Given the spike in stock prices, Musk has taken to capitalizing on the positive sentiment by simultaneously driving his followers to invest in Bitcoin. Sentiments such as “You can’t be late to the party, but better late than never” will feed into the already heavy sentiment of Bitcoin being a good investment.
Mainstream Impact
The impression Elon Musk is making on the cryptocurrency world is undeniable. His involvement in the industry and ability to drive jubilation among the crypto markets has had a tremendous effect in terms of increasing awareness and public interest. Furthermore, the role that he has taken in promoting digital currencies has helped to attract the attention of more traditional investment companies. This, in turn, has led to the mainstreaming of cryptocurrency and the evolution of the asset class across centralized banks, amateur day traders, and long-term investors.
In addition, as the appeal of Bitcoin increases and more attention from mainstream media sources is gathered, it has also caused greater governmental scrutiny. Countries like China have reportedly been clamping down on crypto related activity and the European Union is considering whether to impose new regulations on digital currency transactions. This kind of increased regulation could have the potential to significantly impact Musk’s presence within the crypto world.
Despite the constant developments and changes in cryptocurrency, it is clear that Elon Musk has not only left his mark on the digital currency market but has put forth a versatile range of innovations. From his contribution towards public knowledge to his role in developing new systems, Musk’s interest in the cryptocurrency world will no doubt have a lasting effect.
Environmental Concerns
As more and more businesses move towards accepting digital payments, a worrying factor that has emerged has been the environmental impacts of cryptocurrency mining. With the amount of energy required to mine digital assets, it is expected that the energy consumed will affect our environment. According to a recent report, it is estimated that Bitcoin mining contributes to almost 3% of the global electricity consumption, resulting in a dramatic rise in emissions. This could lead to a disruption of global climate targets.
At present, concerns about the mining of cryptocurrencies have not been met with solutions. In response, Musk has proposed that more sustainable sources of energy, such as solar, be considered as a source in order to reduce the environmental damage caused by mining machines such as ASICs. Such a move would allow mining to become more cost-effective and reduce the environmental hazard of energy being generated from fossil fuels.
Also from an environmental perspective, Elon Musk’s involvement with blockchain technology could be seen as a major win for green technology initiatives. Musk’s company, Tesla, is well known for its leading role in developing renewable energy sources. Its initiatives have made great strides towards promoting a clean energy future and its forays into the world of digital money could further increase its impact in minimizing the global warming consequences of traditional finance.
Active Role In Scaling Crypto
Since publicly embracing cryptocurrency in 2018, Musk has devoted a lot of his attention to the growth of cryptocurrency by investing in a number of projects. His personal investments in blockchain related businesses include the previously mentioned Blockstream, a company that focuses on providing businesses with enterprise-grade blockchain solutions, and Openwall, a company that aims to educate businesses on proper security practices.
Musk has also been providing consulting and investing services to a subject of cryptocurrency projects. This may be part of the reason that Dogecoin, a joke currency that was created just a few years ago as a parody of Bitcoin and other digital currencies, has become one of the world’s most popular cryptocurrencies. With Musk providing ample support and attention to the project, the currency has caught the attention of many investors, leading to its increasing popularity.
In addition, Elon Musk has hinted that he and his teams are in the process of building a scaling solution for cryptocurrency. Through his Twitter account, he has responded positively to a number of developments from the Lightning Network and Optimistic Rollups. This could therefore reflect future initiatives from Musk to expand the use cases for cryptocurrency for individuals and businesses alike.
Future of Crypto Under Elon Musk
The future of cryptocurrency under Musk’s guidance looks bright. As an advocate of decentralization, his views on the advantages of digital currencies over fiat money are extremely clear. It is difficult to determine the true purpose of his involvement in cryptocurrency and the projects he has invested in yet, but it certainly indicates that he is passionate about the space.
Furthermore, Musk’s entrance into the blockchain world has likely contributed to a reduction in the public’s distrust of cryptocurrency. Elon Musk’s actions within the cryptocurrency world have often caused controversial debates to erupt and his personal views are no doubt going to influence the investment decisions of many. Due to the unpredictable nature of the space, it is difficult to accurately predict what changes will come from Musk’s involvement in digital assets. However, it is clear that the world of cryptocurrency is about to be revolutionized due to his arrival.
