Bitcoin hitting the $5,000 mark for the third time in its history has again sent cosmic storm in the cryptoverse, that is understandably experienced by other cryptocurrencies. Thought leaders from every vertical have already confessed about the disruptive capabilities of cryptocurrencies and again the recent surge has got everyone talking. So is the case with CEO and founder of Tesla and SpaceX, Elon Musk, who in his latest tweets has revealed his favorite cryptocurrency, the Dogecoin.
Ranked 22nd among other cryptocurrencies, based on the market cap, Dogecoin was created as a joke in 2013, by Jackson Palmer. With the current market cap of well over $419 million from $248 million on 1st April 2018, the cryptocurrency witnessed a mammoth 70% price surge in the last week.
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Musk showing his inclination towards Dogecoin was more of a shock than a surprise, mainly for two reasons. Firstly, it all started as an April Fool’s Day poll initiated by the official Dogecoin Twitter account in which they asked the crypto community to vote for a new CEO and provided four options to choose from. When polling time finished, Elon Musk stood tall with 54% votes out of a total of 4,366 votes. At this point, no one anticipated Elon’s response to the poll. So when Musk replied out of nowhere, it appeared as a thunderbolt for Dogecoin community as well as the overall crypto community.
We have listened to your concerns. We have decided that Dogecoin does need a CEO. Someone who can lead us into the future while maintaining the core values of what we are.
— Dogecoin (@dogecoin) April 1, 2019
While Musk’s first response was completely unexpected, his two other tweets supporting Dogecoin proved to be a shocker for the crypto community. In one of the tweets, he posted a meme with a message ‘Dogecoin rulz’ whereas in the other one, he endorsed an article related to Dogecoin and predicted a price drop for the coin. The immediate result of his three tweets resulted in Dogecoin netting more than 30 percent gains in its value!
Apart from his timely response, the content of his comment was quite astonishing as well. Musk stated that Dogecoin might be his favorite cryptocurrency. This was unexpected of him because he had never mentioned his interest regarding Dogecoin in the past. Instead, he was often involved in conversations about the bitcoin.
Dogecoin might be my fav cryptocurrency. It’s pretty cool.
— Elon Musk (@elonmusk) April 2, 2019
In his recent interview, Musk lauded bitcoin and extended his praise to Ethereum. He outlined the structure of bitcoin as brilliant and consented in favor of cryptos by putting them superior to paper money. He stated that paper money was vanishing away and cryptos provided a much better alternative for transferring value. However, Musk was not all optimistic for bitcoin.
He pointed out ‘computation’ as a potential flaw of bitcoin. He was of the view that bitcoin was quite energy intensive. Last year, an estimation showed that power consumed by bitcoin servers reached up to 22 terawatt-hours (TWh) per year which is almost identical to Irelands’ power consumption. Musk was of the view that there must exist some constraint on creating cryptocurrencies as he believed power consumption posed limitations to the number of cryptocurrencies that can be generated. Despite all this, Musk admitted that he only held bitcoin which was sent to him by his friend in the past.
Not sure. I let @jack know, but it’s still going. I literally own zero cryptocurrency, apart from .25 BTC that a friend sent me many years ago.
— Elon Musk (@elonmusk) February 22, 2018
Apart from that, Musk and bitcoin share more history. While crypto scammers were undesirably spreading on Twitter, in an attempt at humor, Musk went with the flow and offered bitcoin to a Twitter user. This resulted in the suspension of his Twitter account after which he concluded that Twitter has deployed some automatic mechanism which bans accounts selling bitcoin.
Wanna buy some Bitcoin? 😉😉 pic.twitter.com/9ZbBJ5fuVq
— Elon Musk (@elonmusk) October 22, 2018
When the interviewer stated that in the U.S. buying things like pizza or coke with crypto wasn’t possible, referring to the famous bitcoin pizza incident, Musk sarcastically suggested that it may be the case for coke but not for pizza. .
It’s a bit strange that Elon Musk would turn down the offer to participate in the lightning torch, a trend gaining popularity over Twitter that requires sending a small amount of bitcoin using bitcoin lightning network.
Musk is a highly influential tech entrepreneur and rightly gained significance in the crypto world. However, his interaction with the crypto community has been unusual and vague, unlike what he is known for. Until and unless Musk takes a clear position on the crypto world, one can only guess what this genius of our times is up to.