Byline: Hannah Parker
Elon Musk is well-known for his interest in and investment in cryptocurrencies.
Even as the value of Bitcoin and other popular coins fell throughout 2022, Musk stated that he “won’t sell” his cryptocurrency holdings. Musk owns three virtual currencies: Bitcoin, Ethereum, and Dogecoin, though he has stated that he believes Dogecoin is better suited for real-world transactions than Bitcoin.
While Musk has stated that he has invested some of his own money as well as some of Tesla’s money in cryptocurrencies, you may be wondering whether the billionaire believes that ordinary Americans should do the same. Here are Musk’s thoughts on investing in this asset class.
Unlike some big names in business and investing, such as Warren Buffett, Musk believes crypto investments have a lot of promise and may deserve a spot in your portfolio.
While Musk has stated that he has invested some of his own money as well as some of Tesla’s money in cryptocurrencies, you may be wondering whether the billionaire believes that ordinary Americans should do the same. Here are Musk’s thoughts on investing in this asset class.
Musk Comments on Crypto Investments
In an interview, Musk noted that “If you want to speculate and have some fun — there’s a good chance that crypto is the future currency of Earth,”
It’s mentioned openly on Musk’s Twitter that he supports crypto over fiat currency. Although Musk believes cryptocurrencies have definite promise and are likely worth investing in, he does not want people to overinvest in an untested asset class that is volatile and highly speculative.
In May 2021, Musk tweeted, “Cryptocurrency is promising, but please invest with caution.” Musk has also stated that he “definitely wouldn’t bet the farm on crypto,” that his investments were made “out of curiosity,” and that “true value is building products and providing services to your fellow human beings, not money in any form.”
According to insight from the team at Bitcoin XBT iFex 360 AI, while he believes cryptocurrencies have the potential to thrive in the future, he warns that it is still being determined which coins will succeed in the long run, and investing in them is fraught with risk. As a result, investors should exercise caution, include them in their portfolios sparingly, and consider investing in companies that provide products and services that add value to people’s lives.
Musk’s Top Three Cryptocurrencies
On November 14, 2022, Musk tweeted, “BTC will make it, but it might be a long winter.” This comment had a significant impact on price. The price rose to $16,980 from $17,000, and is then trading at $16,767 — a 4.88% increase at the time of writing. Like Tesla and SpaceX, he owns some bitcoins, as previously stated. Furthermore, according to Tesla’s most recent SEC filings, the company has $218 million in digital assets and has sold 75% of its Bitcoin holdings.
Musk, a DOGE fan, responded on Saturday on Twitter with a bullish statement that DOGE was headed to the Moon.
Musk recently mentioned on Twitter, “I believe Bitcoin, Ethereum, and Dogecoin have a future. I can’t address the others. But I believe it will work fine if you have one of those three in a cold wallet and off an exchange.”
Even as the value of Bitcoin and other popular coins fell throughout 2022, Musk stated that he “won’t sell” his cryptocurrency holdings.
Dogecoin, which uses the image of a Shiba Inu dog as its logo and namesake, is the eighth most valuable digital currency, far ahead of cryptocurrencies linked to decentralized finance (DeFi) projects, which are seen as the future of financial services.
Musk stated in July 2022 that he would continue to buy dogecoins despite the struggles of the cryptocurrency market, which has lost over $2 trillion since its all-time high of $3 trillion a year ago. At the time, Tesla had sold 75% of its bitcoins, but the billionaire had stated that he had no intention of selling Dogecoin.
Visionaries, risk-takers, engineers, technicians, programmers, and great people in business are at the root of all great inventions and products. However, once the products reach the market, become popular, and capture the public’s attention, celebrities and public figures become involved. This is because of two factors: their marketability and their commentary. Elon Musk, in particular, has established himself as one of the most influential figures in the worlds of Bitcoin, cryptocurrencies, and Dogecoin. This is due not only to his celebrity but also to the fact that he is a billionaire genius inventor and engineer and a first-mover in the payments and banking industry (through his involvement in Paypal). As a result, his opinions, which he frequently shares on Twitter, have significant weight and meaning and undoubtedly impact the markets.
