In a series of tweets since January, Tesla CEO Elon Musk has been promoting the Japanese Shiba Inu-themed digital currency, Dogecoin, as “people’s crypto.”
The richest man in the entire world has been steadily turning heads with his increasing interest in the cryptocurrency sector, particularly with dogecoin recently. Founded in 2013 by software engineers Billy Markus and Jackson Palmer, Dogecoin is an open-source peer-to-peer cryptocurrency that began as an inside joke shared among traders that, thanks to Elon Musk’s viral tweets, began its ascent into a genuine cryptocurrency player.
Dogecoin today remains the 13th most valuable cryptocurrency in the world, with a market cap nearing $8 billion as it is. It’s recent price surge has seen it rise in value from less than $0.01 as the year started to just over $0.08 and growing.
Much of its growing traction can be attributed to Tesla and SpaceX’s CEO constant tweets and memes, as well as tangible evidence of his support for the sector by investing $1.5 billion in cryptocurrency earlier this year. Elon Musk himself has said he will buy out major Dogecoin holders in order to help make the infamous virtual currency the “currency of the internet”.
Elon Musk recently overtook Amazon founder Jeff Bezos’ title of world’s richest person by claiming it himself, emboldening him with making jabs at so-called crypto whales who hoard large stockpiles of Dogecoin for their own benefit. These large “crypto whales”, he argues, are the only thing standing in the way of Dogecoin becoming a major, mainstream currency accessible to most.
“The most entertaining outcome is often the most likely,” he said during a recent Q&A session on the app Clubhouse. “Arguably the most entertaining outcome, and most ironic outcome, would be that Dogecoin becomes the currency of Earth in the future.”
The billionaire’s support for financial innovation has always been evident in his business choices, perhaps the billion dollar investment is another way for him to showcase just how much, along with hinting at the possibility of accepting Bitcoins as viable payment method for his company’s products.
Meme-fuelled tweets and off-hand comments aside, Elon Musk, known for catapulting disruptive ideas in both transportation and space tourism, is on the path to seriously wagering cryptocurrency as a legitimate, viable financial solution. He states two reasons for this: as a stable store of value for investors and as a reliable medium of exchange that can rival the dollar in everyday economic transactions.
Currently, given its only recent brush with fame and not as established structure as compared to bitcoin, Dogecoin still has a long way to go in terms of becoming a mainstream form of payment; but with the gravity of Elon Musk’s support towards it, it shouldn’t be long until we see the fruits of his labour come up with tangible results.