After Elon Musk said that he would not sell digital tokens that he owned, a tweet from the billionaire caused a temporary spike in cryptocurrency’s value.
In a tweet, the Tesla and SpaceX chief sought responses on what the likely inflation rate would be over the next few decades. He tweeted that he was seeking advice on the topic: “As a general principle” It is better to have physical items such as a home or stocks in companies that make quality products than having dollars when inflation is high. “I still own my Bitcoin, Ethereum and Doge fwiw. I won’t let it go (for whatever value).
Bitcoin traded at $37,725 at 5.44 AM India time. Soon after Musk’s tweet it rose to $38,826 by 9:49 AM India time. Ethereum traded at $2,503 at 4:00 AM and rose to $2,595 by 9:49 AM.
Dogecoin rose $0.119 at 9 :49 AM from $0.1107 at 4 :34 AM.
Elon Musk has a reputation for inflating the value of cryptocurrency via his comments on social media. According to Coinbase data, his tweets about Dogecoin, including one in which he called it “people’s crypto”, helped the meme coin rise 5,859 percent over 2021.
Musk was recently named Time magazine’s Person Of The Year for 2021. He reiterated in October his holdings, which were limited to Bitcoin, Ethereum, and Dogecoin. Musk tweets regularly about his observations of the cryptocurrency market.
The value for Dogecoin saw an enormous jump on January 14th, after he stated that Tesla In merchandise can be purchased using Dogecoin.
Musk stated that Dogecoin is better when it comes down to daily transactions in an interview with Time magazine.
The transaction value of Bitcoin is low, but the transaction cost is high. It is suitable for storing value, at least at the space level. However, Bitcoin is not a substitute for transactional currencies,” Elon Musk stated to the magazine.
Dogecoin, even though it was a joke, is more suited to transactions. Dogecoin’s total transaction volume is… more than Bitcoin.
He said that while Dogecoin might be inflationary, it was still a fixed amount as opposed to Bitcoin. He said that Dogecoin encourages people not to hoard money as a reserve of value, but to spend.
He said, “And that’s actually beneficial because it encourages people spend, rather than hoarding as a store-of-value.”