The Musk Effect
Elon Musk has been one of the most prominent figures not only in the business world but also in the Crypto space. From being predicted as Satoshi Nakamoto to calling himself the ‘dogefather’, the current world’s richest man has so much influence in the Crypto space that a single tweet from him could be enough to rally a bull run for Bitcoin, Dogecoin and other Cryptocurrency in the market. But how did it all start and should we cling our investment hopes to Mr Musk’s next ‘tweet’?
Source: http;//www.yenisafak.com/
Elon Musk’s relationship with Dogecoin and Bitcoin.
Elon Musk’s close relation with Cryptocurrency started in July 2020, where his Twitter was hacked to promote a scam, on which Musk Tweeted, “Excuse Me, I only sell Doge.”
That resulted in a spike of trade volumes of Dogecoin from an average of 2000–3000 trades per minute to almost 20000 trades per minute of Dogecoin.
In December 2020, he introduced plans to convert its large transactions to bitcoin and he added bitcoin on his Twitter bio on January 29, 2021, and it all resulted in a spike by 18.95% on Bitcoin’s value.
Around January, it is assumed that Tesla during its SEC filing had purchased $1.5 Billion worth of Bitcoin. It is unclear on what price Tesla purchased it for but according to CoinDesk data, bitcoin’s price has gone from $34,793 on Jan. 31 to $57,487 on Feb. 20. That’s a rise of about 65%, which would put the profit on Tesla’s $1.5 billion bitcoin investment at around $975 million.
Around this time was also where it stated it will accept Bitcoin as payment. Bitcoin reached its all-time high of $61,000 at beginning of May.
Fast forward to recently on May 13, it did a U- turn stated that it would stop accepting Bitcoin as a payment method due to environmental concerns over the mining process and it caused Bitcoin to decline by over 5% taking more than $100 Billion from its value and Dogecoin by over than 30%.
How safe are your investments?
Warren Buffet put it well when he said “Risk comes from not knowing what you are doing.” The Investments people are making because of a single tweet from Mr Musk is probably good for a trader who likes market volatility but not for most people, they are looking for the safety of their own money. After all, nobody will promote anything if it wasn’t for their profits.
Blockchain technologies were aimed to create a decentralized world and once people start trusting their instincts and analysis to make these cryptocurrency investments, then only a true decentralized world can be formed. “Learn to seek ‘Value’ in the market instead of seeking ‘Hype.’
We in Nagaya Technologies, are aware of this pump and dump situation and we feel that it is a growing trend that needs to be addressed in a market that is still growing over the future. This led us to create the world’s first hybrid cryptocurrency that has a gold back-up to provide its intrinsic value and also running subsidiary projects that will keep increasing its value.
Interested to know more about Nagaya Technologies, you can find out more at www.nagaya.io
Or you can talk to us at t.me/nagayaofficial
