In November, tech mogul Elon Musk turned his attention to digital currency. His impact on the cryptocurrency market as we know it, has been virtually apocalyptic, with the world reacting to his tweets and actions. So what role does Elon Musk actually play in the world of digital currency, and how is he shaping its future?
Musk’s connection to digital currency began with Bitcoin. Tesla said it would accept Bitcoin to pay for vehicles in early 2021 and subsequently invested $1.5 billion in the cryptocurrency. The move pumped out Bitcoin’s price, showing the strength of Musk’s power. But Musk subsequently changed his mind, saying Bitcoin’s energy consumption raised environmental issues, and the coin’s value fell sharply.
But Musk’s touch doesn’t end there. He has actively promoted Dogecoin, a meme-inspired cryptocurrency originally created as a joke. His tweets about Dogecoin have repeatedly sent its price soaring, earning him the title of “Dogecoin CEO,” even though he has no formal role in the project.
More recently, he has shifted his attention toward his own company, SpaceX, and its series of solutions that integrates cryptocurrency into its operations. He was going to experiment with digital currency in his new role from his association with The Boring Company and beyond.
Musk’s influence on digital currency is not purely a matter of price movements; it’s a matter of legitimacy, and of adoption by the mainstream. Musk has popularized digital currencies as part of mainstream dialogue, sparking people to consider them without hesitation, as a valid currency as well as an investment. His influence will no doubt continue to define the space for years.