Whether you like it or not, Elon Musk is one of the greatest entrepreneurs of our time. He is a modern-day genius who wants to revolutionize the world in which he lives. No project seems too ambitious for him. As soon as he has an idea, Elon Musk goes all the way.
His extraordinary successes with Tesla and SpaceX have made him highly respected. Elon Musk’s opinion counts enormously beyond the world of Tech.
When Elon Musk has fun tweeting that the Dogecoin is the future, the price of this Altcoin increases by more than 30% in a few hours. With more than 44 million followers on Twitter and a huge aura, Elon Musk has a pretty incredible power of influence in the markets now.
A 7-letters biography change on Twitter makes the Bitcoin market euphoric
On January 29, 2021, Elon Musk made a change to his Twitter biography to include the following 7 letters:
This change was accompanied by an enigmatic tweet:
“In retrospect, it was inevitable”
For a majority of Bitcoiners, it was greeted as a long-awaited event: the day Elon Musk embraces the Bitcoin revolution. In the aftermath, the price of Bitcoin skyrocketed. It went up 20% in two hours from $32.0K to $38.4K.
Many were then hoping for more from Elon Musk. Many people on Twitter started asking him for confirmation. Euphoria seized the market. Everyone wanted to know if Elon Musk owned Bitcoin, or if Tesla was planning to adopt the same Treasury Reserve Policy as MicroStrategy.
As is often the case with Elon Musk, there was complete silence after this tweet.
Despite the euphoria, this tweet meant nothing to me
Elon Musk has shown in the past that he loves to publish these kinds of enigmatic tweets before he lets his followers waste an incredible amount of time trying to figure out what his message means.
While everyone was getting excited, I was one of the few Bitcoiners to publish an article against the flow explaining that Elon Musk was not (yet) a Bitcoiner. A simple enigmatic tweet and a change of biography on Twitter meant nothing to me. Last month, he had fun writing that he was the former CEO of Dogecoin in his biography for example.
In these circumstances, I expected more from Elon Musk before I became enthusiastic. And then, as I often explain, if you choose to buy Bitcoin, you should do it first of all because you are convinced by its revolution. You should never buy Bitcoin by blindly following the advice of Bitcoin influencers, which of course includes me.
Bitcoin is there to give you back the power regarding money. You should try to understand why the current system has deprived you of this power before you buy Bitcoin. Those who bought Bitcoin worn by the FOMO effect of Elon Musk’s tweet must have been quickly disenchanted for the rest of the day when it remained silent.
The price of Bitcoin then dropped back to almost where it started: at $32.9K.
This caused a Pump & Dump move in the Bitcoin market
What happened on January 29, 2021, clearly resembled a Pump & Dump move that some Whales usually trigger on low market cap Altcoins to manipulate the prices and make a lot of money. All this to the detriment of retail investors of course.
I had already written an article on this type of Pump & Dump moves that Elon Musk’s tweets could trigger.
This inspired the following illustration this time:
Elon Musk must have been amazed that he could manipulate Bitcoin price so easily when his market cap is over $600 billion.
Elon Musk clarifies his position regarding Bitcoin two days later
On January 31, 2021, Elon Musk finally participated in a Clubhouse event. For those who are not familiar with this application, Clubhouse is a Silicon Valley-focused social media application that is audio-only. Clubhouse application is highly appreciated by innovators like Elon Musk and venture investors.
Only 5,000 individuals have been able to get an invitation to join this very private social network.
Elon Musk’s intervention in Clubhouse yesterday was first of all a validation of the success of this application. Secondly, everyone was hoping that Elon Musk would talk about Bitcoin. The expectation was very high following his change of bio on Twitter two days earlier.
I must say that we were not disappointed by what Elon Musk said during this intervention.
Elon Musk said several things that make me think that he is on his way to becoming a Bitcoiner. First of all, Elon Musk made it clear that his tweets about Dogecoin were only there to make jokes:
“They are really just meant to be jokes, but you know Dogecoin was made as a joke to make fun of cryptocurrencies obviously, but fate loves irony and often as a friend of mine says that the most ironic outcome or I’d say the most entertaining outcome and the most ironic outcome would be that Dogecoin becomes the currency of earth in the future.”
People who rush to buy Dogecoin at every one of Elon Musk’s tweets on the subject should reassure themselves: Elon Musk doesn’t think that Dogecoin is the future.
This is already the first important point for me.
Elon Musk went on to say that he thought Bitcoin was a good thing:
“I do at this point think Bitcoin is a good thing, and — so, I am a supporter of Bitcoin.”
Elon Musk even regrets not having bought any 8 years ago. He feels like he’s late to the party now:
“So, clearly I should have bought some Bitcoin 8 years ago. (laugh) Like, what more can people do? Jesus. Talk about being late to the party.”
He can reassure himself. It’s not too late to take advantage of the Bitcoin revolution. It’s even the perfect time to come and buy Bitcoin and take power.
In the same response to a question from Sriram Krishnan, Elon Musk explained that he sees a very promising future for Bitcoin:
“And I think that Bitcoin is really on the verge of getting broad acceptance by conventional finance people.”
Finally, the highlight of this interview concerns the position of Elon Musk regarding other cryptocurrencies:
“So… I don’t have a strong opinion on other cryptocurrencies.”
So Elon Musk is interested in Bitcoin, but has no particular interest in other cryptocurrencies, except Dogecoin which is a joke that he likes to make occasionally on Twitter.
What’s next for Elon Musk with Bitcoin?
Now that Elon Musk has confirmed that he thought Bitcoin was a good thing, and that he saw a great future for Bitcoin, we need to think about what could come next. Elon Musk needs to express his opinion beyond an application like Clubhouse, which is of great importance especially to technophiles, but unknown to the general public.
Elon Musk should tweet his message to his 44 million followers to help the general public understand that Bitcoin is a true monetary revolution.
Elon Musk should consider adopting the same Treasury Reserve Policy for Tesla that Michael J. Saylor implemented with MicroStrategy. This would be a strong signal from him. We’re not there yet, of course, but it’s a possibility that’s on the minds of all Bitcoiners now.
We’ll see what Elon Musk does in the coming weeks and months regarding Bitcoin, but the fact that the richest man in the world seems to want to become a Bitcoiner is a good thing. It will be a great thing if he uses his aura to help as many people as possible to truly understand the liberating power of Bitcoin.