Elon Musk backs bitcoin, dismisses dogecoin
Tesla CEO Elon Musk has officially become a supporter of bitcoin and dismissed previous comments he has made about dogecoin as jokes. He made the remarks over the weekend in an interview on the popular Clubhouse chat app.
Elon Musk supports bitcoin
On Friday, Musk added the hashtag #bitcoin to his Twitter bio, which gave the cryptocurrency’s price a boost, sending it up by as much as 20%. Then on Sunday, he spoke at length about his support for bitcoin in an interview on the Clubhouse app.
He believes bitcoin is “on the verge of getting broad acceptance by conventional finance people.” Musk also said he had to watch what he said in the interview “because some of these things can really move the market.” He added that many of his friends have attempted to convince him to buy bitcoin for a long time.
Musk sampled a piece of “bitcoin cake” that a friend gave him in 2013. He also said he should have bout some bitcoin eight years ago. However, he supports the cryptocurrency now even though he is “late to the party.” The Tesla CEO believes bitcoin “is a good thing,” although he doesn’t have a “strong opinion” on other digital currencies. That statement runs counter to what many believed he thought about dogecoin, a meme-based cryptocurrency that was created as a joke.
Musk dismisses dogecoin
Last week, dogecoin surged by as much as 800% in a single day after Musk tweeted about it. Many Reddit users took his tweet to mean he supported the digital currency. However, he clarified on Sunday that he sometimes makes “jokes about dogecoin, but they are really just meant to be jokes.” Musk noted that the creators of dogecoin made it as a “joke to make fun of cryptocurrencies.”
He added that “fate loves irony,” and “the most entertaining outcome and the most ironic outcome would be that dogecoin becomes the currency of Earth in the future.”
Little change in bitcoin and dogecoin prices
Neither bitcoin nor dogecoin was affected much by Musk’s comments on the Clubhouse app. Both cryptocurrencies declined in price slightly after the interview. According to CNBC, dogecoin tumbled over the weekend but remained up 40%.
Bitcoin has more than quadrupled in price over the last 12 months. It reached a new record high of almost $42,000 in early January. Bitcoin bulls say increased interest from institutional investors has been driving the cryptocurrency’s price. They also say bitcoin is more widely seen as a safe haven similar to gold. Bitcoin has also played a role in the foreign exchange market.
Forex brokers using bitcoin in their trades have had a lot of volatility to contend with in recent months, although some of the wild swings in the price action have settled down. The challenge of using bitcoin in forex trades is that the volatility complicates them and makes it more difficult to turn a profit on trades. In forex, bitcoin is pegged to the US dollar like gold.