He has sent bitcoin's price on a roller coaster this year, and has maintained his perhaps hilarious support for bitcoin's "joke" rival Dogecoin.
1.5 trillion Cryptocurrency is in Chaos!
Musk’s unpredictable yet continuous statements are causing a lot of uncertainties among the crypto community. Market values seem to skyrocket or plummet based on the force of one man's tweets and statements in a supposedly decentralized business meant to be impenetrable to any single party's influence. This makes the $1.5 trillion cryptocurrency industry appear chaotic and dangerous to newcomers. Regulators will almost certainly pay notice to it. It also goes against the core idea that led to the formation of the world's most popular cryptocurrencies, bitcoin, and Ethereum.
Elon Musk has stated the founding father of Ethereum – the world’s 2nd maximum treasured cryptocurrency – is afraid of its “joke” rival, Dogecoin. Musk used his favorite social media tool, Twitter, to explain why he supports Dogecoin, telling another Twitter user that Dogecoin "has dogs and memes"—helping the Dogecoin market recover from a weekend sell-off.
Bitcoin VS Ethereum
Over the last few years, the cryptocurrency market has been inundated with digital tokens attempting to outperform bitcoin, with challengers to Ethereum, the second-largest cryptocurrency after bitcoin, seeing competition from a slew of alternatives promising reduced costs, faster transaction times, and higher efficiency. Musk had previously invited developers to contribute ideas for Dogecoin upgrades and enhancements via Reddit and GitHub, as well as responding to a news piece on Ethereum upgrades by saying that Ethereum co-founder Vitalik Buterin "fears the [doge]."Elon musk with his Doge,destroying the name and reputation that Ethereum has gained over the years. Also, Musk has consistently chosen the meme-based cryptocurrency as his favored crypto in recent years, having eagerly accepted the honorary title of Dogecoin CEO following a 2019 Twitter poll. Meanwhile, Dogecoin's original developer, who earlier revealed that he built Dogecoin in two hours "without thinking about anything," has claimed that he is unlikely to return to the Doge network's development. Despite criticism for its lack of development and excessive token concentration among a few accounts, Dogecoin has increased by an astonishing 12,000 percent since this time last year as investors predict the price will continue to grow as social media stars and billionaires cheer on the Shiba Inu dog-based memecoin, prompting speculation that the Dogecoin price might reach as high as $1 per Dogecoin.
The Recent of Elon Musk
Notably, all cryptocurrencies, including bitcoin, and ethereum have plummeted in value in recent days after Elon Musk stated that Tesla will no longer accept Bitcoin for transactions. His tweets have frequently resulted in a massive rise or a dramatic collapse in crypto assets. Elon Musk is well-known for using his Twitter account to irresponsibly manipulate the Bitcoin market. He did it again recently, producing an enormous crash across all borders when he tweeted that Tesla would no longer accept Bitcoin as a form of payment.
StopElon is viewed as a movement by crypto enthusiasts, who see it as a defense against Musk's manipulation. The founders don't want another token to be snatched up by Musk's whims. Traders and investors are annoyed by the excessive volatility in the cryptocurrency market, which increases the risk for all parties involved. Bitcoin and Etheruem were due for a correction.
We observed a substantial drop in the prices as a result of global events like Elon Musk's statements and China's ban on crypto-related activities. Market volatility is a characteristic of any traded asset, and we should treat this event as such. We've always recommended looking at Bitcoin and Ethereum as a long-term investment. One of Musk's most recent Tweets showed that a future SpaceX lunar trip will not only be the first crypto in space but will also be entirely funded with Doge.
Musk's experience with Dogecoin is scaring many people away from the possibilities of Ethereum and other crypto coins trading and holding. This is what could have helped crypto become widely accepted money around the world, but Musk's antics have revealed the drawbacks of a single person's influence over an entire economy.
Because cryptocurrencies are not tied to any centralized commodities or market securities in the same way that traditional equities scripts are, Charles Hoskinson, the creator of Ethereum suggests that protocol should be made before hailing cryptocurrency as ''the future''.