Elon Musk's Crypto Portfolio: An Analysis

Elon Musk holds Bitcoin, Ethereum and Dogecoin. Is it possible that he holds more crypto assets?

Elon Musk usually tweets about various cryptocurrencies, and in doing so, has apparently affected their prices in recent months. His influence was felt several times in 2021. For instance he repeatedly posted pictures of his Shiba Inu puppy on Twitter. Some people felt that those tweets had a positive influence the price of the Shiba Inu altcoin. He clarified later that he doesn't have any Shiba Inu coins.

In one of his tweets, Musk said, "As I've said before, don't bet the farm on crypto!" In another tweet, he said, "True value is building products & providing services to your fellow human beings, not money in any form."

For him, he said that it all began after hearing about the crypto that started as a joke in 2013, from his employees.

Musk said, "Lots of people I talked to on the production lines at Tesla or building rockets at SpaceX own Doge." He also said, "They aren't financial experts or Silicon Valley technologists. That's why I decided to support Doge — it felt like the people's crypto."

Elon Musk's support for Dogecoin isn't new. Actually, Musk began tweeting about dogecoin in 2019.

Even though he said that he hasn't recently had communication with dogecoin developers, Musk has frequently hinted at working with them throughout 2021.

Musk has even made a joke about dogecoin certainly becoming the future reserve asset.

For instance, he told TMZ back in May that, "The point is that dogecoin was invented as a joke, essentially to make fun of cryptocurrency." Later on, Musk said, "Fate loves irony. What would be the most ironic outcome? The currency that started as a joke in fact becomes the real currency. To the moon!"

However, remember, just because influential people like Musk tweet concerning a particular cryptocurrency doesn't imply it is valuable or an ideal investment. Crypto market analysts warn that following social media hype will likely lead you to lose money.

As such, investors need to always carry out their research before deciding which crypto to put their money in. In 2017, the SEC issued a warning saying, "it is never a good idea to make an investment decision just because someone famous says a product or service is a good investment."

Experts insist that cryptocurrency is a speculative, risky, and volatile investment. They warn investors to only invest what they can afford to lose.

November 14th 2021

Elon Musk says Dogecoin is Suitable to Purchase Items with than Bitcoin

Elon Musk, CEO of SpaceX and Tesla, has consistently expressed his support for dogecoin. The billionaire disclosed in October that he has invested in the meme-inspired crypto along with BTC and ether. Musk told Time Magazine that dogecoin has an advantage over bitcoin and other cryptos: He favors dogecoin as the ideal crypto to transact with.

He told Time Magazine after being acknowledged Time's 2021 Person of the Year, "Fundamentally, bitcoin is not a good substitute for transactional currency." Musk added, "Even though it was created as a silly joke, dogecoin is better suited for transactions."

Musk said, ″The transaction volume of bitcoin is low, and the cost per transaction is high." Musk added that bitcoin is more suitable as a store of value, which is why its investors want to hold onto it and not sell it or use it for transactions.

Dogecoin, on the other hand, is a currency that "encourages people to spend, rather than sort of hoard as a store of value."

Still, Bitcoin supporters would agree that it's a store of value, they'd also support its utilization as a secure peer-to-peer financial system, and thus, the asset can be used for transactions in countries that make it legal tender such as El Salvador.

Even though Musk is bullish on crypto, he recognizes the stability of fiat. He told Time, "I'm not a huge hater of fiat currency like many in the crypto world are."

However, Musk says, "There are advantages with crypto relative to fiat, in that fiat currency tends to get diluted by whatever government it is. It ends up being a pernicious tax on people, especially those who have cash savings with dilution of the money supply."

Still, financial analysts view crypto as a volatile, speculative, and risky stake. Hence, it's advisable to only invest what you're ready to lose.