Elon Musk reiterated his support for Dogecoin, but advised against investing in cryptocurrencies
The Dogecoin altcoin has often been associated with Elon Musk since early last year, as the billionaire has done much to popularise the coin through his Twitter posts and public statements. The day before, Elon participated in Qatar Economic Forum event, where he once again stressed his interest in popularizing DOGE. Musk also voiced a rather unexpected quote – it turns out he “never said people should invest in crypto”. We tell you the details of the situation in more detail.
Note that last night, Twitter’s board of directors unanimously approved Ilon Musk’s bid to buy the social platform for $44 billion. Afterwards, the company’s top executives recommended that shareholders support the deal. Given the information received earlier, it can be assumed that Twitter does indeed have a cryptocurrency integration waiting to happen.
Will Elon Musk support Dogecoin
Here is one of the billionaire’s quotes from his interview published by the news outlet Decrypt.
I intend to personally support Dogecoin because I just know a lot of not-so-rich people who have encouraged me to buy and support cryptocurrency. So this is my response to their advice.
Apparently Musk's interest in Dogecoin was born from other people. And given the mention of their relatively low security, we can assume that through his actions and DOGE PR, Ilon wants to help people improve their financial situation. However, it's important to understand that cryptocurrency collapses can also lead to losses that sometimes simply can't be recovered.
Those same people are some of Musk’s own subordinates and just occasional acquaintances who recommended support for Dogecoin during discussions at one of the Tesla and SpaceX factories. Their recommendations really influenced Musk, as he tweeted posts and memes in support of DOGE quite often.
Read also: How much money did Tesla and MicroStrategy lose on the current Bitcoin collapse?
Naturally, because of this, the altcoin price skyrocketed and a great many people invested in it just amidst the hype. However, Ilon has tried to absolve himself of all responsibility for the possible losses of market players once the bearish trend starts. Musk continues.
I never said people should invest in crypto. In the case of Tesla, SpaceX and myself, we did acquire Bitcoin, but in a very small ratio to our liquid funds.
Here is a recording of Ilon’s rejoinder in which he shares his perspective on what is happening. We recommend you watch it if you can understand English by ear.
JUST IN: “I have never said that people should invest in crypto. In the case of Tesla, SpaceX, myself, we all did buy some Bitcoin, but it’s a small percentage of our total cash assets,” says Elon Musk https://t.co/BLcp2WIvub #QatarEconomicForum #منتدى_قطر_الاقتصادي pic.twitter.com/R1ZfRGxWBR
– Bloomberg Live (@BloombergLive) June 21, 2022
Quite an interesting statement, but it’s unlikely that anyone will believe it – the crypto community has been outraged by Musk’s statements more than once. Now there’s even a $258 billion lawsuit filed against him. The plaintiff, represented by Keith Johnson, claims that the billionaire is involved in a huge scheme to inflate the crypto market bubble.
Here is Johnson’s relevant quote.
Musk used his title as the richest man in the world to manipulate the Dogecoin pyramid for profit, influence and entertainment.
Losses during the bear cycle are commonplace. Incidentally, so far their magnitude among crypto investors is not as large as it might seem at first glance. According to analytics platform Glassnode, as of June 20, 56.2 percent of cryptocurrency wallets are still in profit after buying their bitcoins.
Traditionally, the bottom of a bearish trend in the crypto industry has previously coincided with a serious increase in the number of those holding coins at a loss. For example, in March 2020, only 41 percent of BTC holders had a profit, meaning that the majority of half incurred losses. Thus, many experts fear that the current “crypto-zima” could become even worse in terms of profitability for Bitcoin buyers.
The major cryptocurrency is trading just above $20,000 today after recently rebounding from a low of around $17,600. However, in dollar terms, the amount of unrealised losses has already approached an all-time high of $4.76 billion in just 24 hours. If it continues to grow, the panic among investors and traders may reach a critical point – then they will start to sell BTC in large quantities to at least compensate for losses. And that by tradition may be the end of a bearish trend. However, this lasts for quite a long time.
We think that purely technically Musk really didn't advise people to invest into cryptocurrencies, but his regular jokes about coins and constant PR for Dogecoin definitely contributed to it. It's likely that the latter won't end. Especially since Ilon is willing to support digital assets further.
Keep an eye on the market in our Millionaire Cryptochat. There we discuss the most important developments in the world of blockchain and decentralisation.