Surely you have heard that billionaire Elon Musk bought Twitter and planned to make it "more democratic." After purchasing a 9% stake in Twitter in April, he offered to buy all social network shares for $43 billion. The Wall Street Journal says that on the 24th of April, the parties met to discuss the proposal. The deal will be closed till the end of the year. The stock's splash led Elon Musk to the first place in the world's wealthiest people list, surpassing Jeff Bezos.
Earlier in March, Tesla's CEO asked his Twitter followers if the platform adheres to the principles of freedom of speech. More than 70% of the survey participants answered negatively. Musk decided to act.
Wisebitcoin decided to figure out how this purchase affects the cryptocurrency world and what consequences might follow.
Be careful while trading cryptocurrency, which is a risky asset that brings people not only profit but also losses. Try to count this blog as a recommendation instead of a plan or direct call to action.
Twitter has always been at the forefront of any informational occasion. Created in 2006, this social network for microblogging has become almost the main newsmaker worldwide. Politicians from all over the world write their statements there, game companies announce new releases of their products, and even traders monitor the rate of cryptocurrencies there. The latter, by the way, is pretty interesting since the statements of some individuals give impetus to the robust growth or fall of digital assets.
Billionaire Elon Musk is a person who, one might say, "plays" with the rates of Bitcoin, Dogecoin, and other cryptocurrencies. His relationships with Twitter seem to be quite intense but close enough.
Being the most followed joker on Twitter with 84 million followers, Musk has often posted profound statements there. During the summer of 2018, he wrote that he wanted to make Tesla a private company. He added that he is ready to buy back all of the shares for $420 apiece. Right now, the SEC (the US Securities and Exchange Commission) accused Elon of fraud because his tweets were seen as a tool for manipulating the company's stock price. After some time, he had to leave the chairman position of the board of Tesla directors and pay a fine of $40 million.
At the same time, before buying Twitter, Musk wanted to make his platform "similar to Twitter" that will give everybody the freedom of speech and fundamental terms of democracy. He desired to spread the information from every source inside the Starlink network, including Russian propaganda.
Elon Musk's tweets usually had a considerable impact on the crypto world. He is often considered a crypto enthusiast and a visionary because his publications and posts affect the rate of crypto coins.
For example, once Musk made a couple of posts related to Dogecoin and Shiba Inu, where he mentioned the benefits of these coins. Of course, their rates rose straight after the post. In addition, Elon wrote that Tesla would start accepting Dogecoin as a means of payment for their products. You can understand what happened after. Also, Musk shared with his followers a post where he talked about buying the DOGE for his young son. After that, Dogecoin quotes jumped by 18% for a couple of days!
In January 2021, Elon wrote: "Looking back, it was inevitable" and added the hashtag #bitcoin in the profile description. The cryptocurrency exchange rate jumped by 20% to $37,700. Then in February, Tesla announced that it had invested $1,5 billion in bitcoin and would accept digital currency as payment. Against this background, bitcoin set an all-time high of $50,000!
Tesla's CEO causes fluctuations in the market with his personal opinion and using the environmental problems. Thus, last year, Elon Musk announced that he would sell some of his Bitcoins because crypto endangers nature and the environment due to its method of extraction. His tweet caused strong price waverings, which led to SEC suspicion of the crypto market manipulation.
This year, in March 2022, Musk tweeted that he owns Bitcoin, Ether, and Dogecoin, not even thinking of selling them. This tweet has caused massive volatility in the crypto market, which immediately increased the price.
SpaceX CEO's passion for digital assets and sharing ideas through Twitter make regulators more attentive to the situation, and investors are more interested in the billionaire's opinion on various cryptocurrencies. This undoubtedly leads to huge fluctuations, making crypto assets risky tools for trading and investing. However, the rates always return to their high price, and Musk plays a huge role.
The majority of media experts claim that Twitter can become too democratic and too liberal by becoming independent from the state. They say that "letting Twitter be free" could fill it with the different types of stalkers, trolls, and other bad guys to target people. In addition, there could appear way more misinformation, fake news, and outright lies that will lead to disaster in the informational environment.
In addition, there are a few more changes Elon Musk has announced to make when obtaining Twitter:
- Tweets editing;
- Open source of Twitter on GitHub;
- Effective ways to get rid of spam bots;
- Changing the monetization model and removing the ads;
- Returning to Donald Trump his account;
- Giving each and everyone the freedom of speech.
Experts think the price of Twitter shares will fluctuate between $45 and $55 until Musk and regulatory officials approve the deal.
Musk will surely set an option to pay on Twitter with cryptocurrency, especially with his favorite one – Dogecoin. This will raise the rate of DOGE and other available crypto assets.
Jack Dorsey, the CO-founder of Twitter and CEO of Block Inc, is highly involved in crypto. He stepped down from the CEO position on Twitter and decided to dedicate his full time to work on his new project – payment service SQ, which is working on a crypto wallet. The former Twitter CEO believes that Bitcoin will become the next reserve currency, replacing the US dollar. He also thinks cryptocurrency will unite a deeply divided country and eventually the whole world.
Thus, Dorsey said that he was delighted to see Elon joining the Board of Directors of Twitter. He emphasized that Musk took care of the world and Twitter's role in its prosperity and development. Elon and Jake look alike: they both are rebels: Musk is not against smoking on live TV, and Dorsey has gone from a run-of-the-mill young "techie" to a "bohemian wizard.
In addition, they both are not ordinary businessmen:
- They have billions at their disposal;
- They have created companies that change the world;
- They both support cryptocurrencies;
- And, at the end of it all, have big egos.
Working together, these two extraordinary billionaires could make a real breakthrough in the field of innovation and technologies and the sphere of media space, information, and access to it. Their contribution to the development of social networks, removing the many obstacles that have arisen in recent years, could lead to a revolution in social network development. Also, they can solve storage and security problems and push companies to accept cryptocurrencies as full-fledged means of payment.
Although everything is going so well, there is another side to the issue: Musk does not always do what others expect him to, including the Twitter Board of Directors and the CEO themselves. Thus, Musk hasn't approved of his being a part of the Board of Directors. In addition, he decided to survey removing the "W" from the company's logo and convert the company's San Francisco headquarters into a homeless shelter since no one shows up there anyway. Musk doesn't look like a player in a "team" based on these posts. His "troublemaker" persona is suitable for Twitter. Their relationships were too interesting not to end up with the "wedding."
However, many economists and market experts say that Musk is not trying to buy Twitter to make it more democratic and make people feel free but primarily to manage the exchange rate of cryptocurrencies. He knows his opinion or saying brings public worries, which helps manage his asset value. Who knows, maybe it is true. But we will find out the natural consequences only after the deal closes. We'll be watching over!
To sum up, the question about the future of Twitter-related cryptocurrencies is pretty complex. Being interested in digital assets, Musk can do anything to stay on the radar of his subscribers and the news tabloids.
However, this, of course, will not prevent the cryptocurrency from becoming an even more influential tool and earning the trust of those who previously did not trust their capital to digital coins. Or opposite.
Musk certainly has support from the Twitter community and crypto influencers like Dorsey. It will help him to keep his lead and make a great platform without forgetting to give another coin the ticket to the future like it was with DOGE.
Wisebitcoin hopes that Elon Musk's collaboration with Twitter will only bring success to both sides of a deal. As any modern company, we want a platform to have freedom of speech, freedom of opinions, and non-canceling. We are sure the CEO of Tesla will do his best to improve the cryptocurrency reputation and its influence worldwide.
By the way, Wisebitcoin helps you monitor cryptocurrencies you are interested in – you need to register on our website and follow the exchange rate on the page. Simply, fast and reliable!
In the meantime, we invite you to look at the curious and current articles we've shared recently. It will help you learn more about the specific cryptocurrency market news and events related to it and about the crypto world and its secrets in general.