What is going on with Elon Musk, Doge, Tesla and Bitcoin? Here is the story so far–business today

Clipped from: https://www.businesstoday.in/technology/what-is-going-on-with-elon-musk-doge-tesla-and-bitcoin-here-is-the-story-so-far/story/430741.html

Musk’s Tesla on Monday announced that it invested $1.5 billion in the cryptocurrency. Tesla also mentioned the possibility of accepting payments in bitcoin, in the near future. Bitcoin’s value as of Tuesday is $47,000.41 which is over Rs 34 lakh.

(Picture: Reuters)

Highlights

  • On Monday, Tesla invested $1.50 billion in bitcoin stating the possibility of the company accepting payment in bitcoin in the near future.
  • Musk in the past has noted that the future Mars economy could be based on cryptocurrency, such as bitcoin.
  • Musk has also caused the price of meme-based cryptocurrency Dogecoin to surge after he said doge is people’s crypto.

Tesla CEO Elon Musk has been vouching for bitcoin, the most popular cryptocurrency, for quite some time. Musk’s Tesla on Monday invested $1.5 billion in the cryptocurrency. Tesla also mentioned the possibility of accepting payments in bitcoin, in the future. “We invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws,” the company noted in a report.

Musk in the past has noted that the future Mars economy could be based on cryptocurrency, such as bitcoin. He had also written “Mars economy will run on crypto,” in a reply to a tweet. Musk’s company SpaceX’s Mars program eventually aims to colonise the planet. Bitcoin’s value has been at a high since it reached $19,800 for the first time in three years in December, last year. Bitcoin’s value as of Tuesday is $47,000.41 which is over Rs 34 lakh.

The price of the cryptocurrency bitcoin soared past $40,000 for the first time in January 2021. Bitcoin’s value in March was only around $5000. As per reports, it has been spurred by online payments giant PayPal saying it would enable account holders to use cryptocurrency. Investors are now treating the cryptocurrency as an alternative asset, somewhat like gold, according to an analysis from data firm Chainalysis.

Musk expressed his support for bitcoin during a recent Clubhouse conversation, “I do at this point think bitcoin is a good thing, and I am a supporter of bitcoin. I think bitcoin is really on the verge of getting broad acceptance by conventional finance people,” he said. Musk recently changed his Twitter bio to simply “#bitcoin” last week, causing a surge in the value of the most popular cryptocurrency. He has since taken the tag off.

Musk has also caused the value of Dogecoin to soar after the cryptocurrency has found a place in his tweets. Until now, Doge was a lesser-known meme-based cryptocurrency that shot to instant fame when Musk called it the “people’s crypto,” after the Gamestop frenzy on Reddit.

The Reddit community on Dogecoin — SatoshiStreetbets claims that it’s the crypto version of Wall Street Bets, one of the Reddit groups, which kept pushing the price of the Gamestop stock, forcing the hedge funds to invest more money causing the latter massive losses. Musk had urged individual investors to punish hedge funds for short selling, tweeting “Get Shorty.”

Musk had then tweeted, “I am become meme, Destroyer of shorts,” paraphrasing the most well-known line from the Bhagavad-Gita — “Now I am become Death, the destroyer of worlds.” The subreddit Satoshi Street Bets gained millions of followers, urging investors to not sell Doge until its value reaches one dollar, saying they had Musk’s backing. Meanwhile, Musk has been sharing tutorials on how to use the coin.

On Monday, dogecoin reached a market value of nearly $10.5 billion, up 107 percent over the past seven days, according to CoinMarketCap.com, which provides data on digital assets. Doge’s value as of Tuesday is $0.07869 which is almost Rs 6. It is hard to miss Musk’s mention of Doge in his tweets. He recently tweeted “Who let the Doge out?” “no highs, no lows, only Doge,” and a meme featuring himself as Rafiki from the Lion King and Dog mascot as Simba, that causing a 50 per cent surge in the price of the cryptocurrency.

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