In February 2021, Tesla announced that it intends to enable the purchase of cars using Bitcoin. A month later Elon Musk tweeted: “You can now buy a Tesla with Bitcoin”. The tweet led to a jump in the currency rate, to a rate of more than $56,000. Two months passed, and Musk tweeted again about the issue of Tesla and bitcoins – but this time he announced that the option to buy the advanced car with the advanced currency is canceled, according to him because of the high environmental price of bitcoin mining. The frenetic entrepreneur has stated that he is considering allowing Tesla purchases with other digital currencies with a lower environmental footprint, and bringing Bitcoin back into the picture if its ecological footprint is reduced. At this point the Bitcoin price dropped to around $30,000-$35,000.
By the way, even after the aforementioned cancellation, Tesla continued to hold a significant amount of the popular cryptographic currency – at the end of 2021, Tesla’s capital included Bitcoin worth approximately 2 billion dollars.
Even before he bought the social network, Elon Musk was very active on Twitter. Quite a few of his tweets dealt with the crypto market – and caused real upheavals in it. In June 2021, shortly after withdrawing from the readiness to allow the purchase of Tesla in Bitcoin, Musk published a meme with a couple going through a breakup, with a quote from a Linkin Park song, a broken heart emoji – and the hashtag #Bitcoin. The requested interpretation led to an immediate drop of about 6% in the Bitcoin price, and other decentralized currencies also lost significant percentages of their values – Tether weakened by about 6% and Dogecoin by about 9%.
Half a year has passed, and Musk announced, or rather tweeted, that Tesla will start accepting Dogecoin payments for merchandise. The currency rate, which was created as a joke, jumped by 20%. Another 6 months later, Musk’s tweet again raised the price of his favorite digital currency: “I will continue to support Dogecoin”, wrote the entrepreneur – and within 3 minutes the market value of this currency increased by approximately 350 million dollars
(And by the end of the trading day close to half a billion dollars were added). Also following the announcements about the purchase of Twitter by Musk, the price of Dogecoin rose significantly – but there are also investors who are fed up with Musk’s behavior and have even filed a lawsuit against him (as well as Tesla and SpaceX) for fraudulent acts related to Dogecoin.
Musk’s opinion in the context of the decentralized currencies is also reflected in a firm opposition to the taxation of the crypto market. In the summer of 2021, it was announced that President Biden is considering imposing a tax on digital investments in order to finance huge investments in infrastructure. According to various estimates, such a tax, if imposed, would yield about 40 billion dollars to the state coffers, but Musk called the legislative initiative “hasty”.
You should know that not only Elon Musk influences the crypto market. Quite a few well-known celebrities published various decentralized products and were even partners in various ventures. Among them: Matt Damon (“The rich go with the brave”), Snoop Dogg, Steph Kerry, Kim Kardashian (who was also sued for crypto fraud), Justin Bieber, Ashton Kutcher, LeBron James, Gwyneth Paltrow, Jimmy Fallon and Eminem. Larry David – who is behind one of the programs that defined the end of the 20th century, Seinfeld – has also become a presenter of a crypto trading platform. In an ad that aired at halftime of the 2022 Super Bowl, David portrayed various characters from history mocking inventions like the wheel, the toilet, coffee and democracy – and the bottom line of the ad was “don’t miss the next big thing”, crypto trading.
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