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Elon Musk announced the hodling of cryptocurrencies in anticipation of rising inflation


Elon Musk announced the hodling of cryptocurrencies in anticipation of rising inflation
Elon Musk announced the hodling of cryptocurrencies in anticipation of rising inflation

Elon Musk has no plans to get rid of his bitcoins, Ethereum and Dogecoin. This was stated by the head of Tesla and SpaceX during a discussion he raised among subscribers on the topic of inflation.

Musk referred to an article in the Financial Times about commodity prices rising to their highest since 2008 amid fears of cutting off supplies of raw materials from Russia. According to the latest data, in the US, annual inflation has reached a record 7.9% since 1982.

“Those who want to learn a lesson from this conversation are better off investing in physical assets. Buy a house or stock in a company that makes good products. By the way, I personally still hold Bitcoin, Ethereum and Dogecoin,” he wrote.

With his tweet, Musk agreed with Michael Saylor. The head of MicroStrategy predicted the collapse of weak fiat currencies and the flight of capital from value stocks, debt securities and cash to “scarce” assets like bitcoin.

Against the backdrop of Musk’s tweet, the Dogecoin price jumped by 10% at the moment. At the time of writing, DOGE is losing 1% of its value in a 24-hour period, according to CoinGecko.

Crypto Chart

Hourly DOGE/USDT chart on Binance. Data: Trading View.

Recall that at the end of February, the head of the FTX cryptocurrency exchange, Sam Bankman-Fried, announced expectations of an increase in demand for bitcoin against the backdrop of economic instability in Eastern Europe.

For reference:

Unlike bitcoin, the creator of Dogecoin is known – his name is Jackson Palmer. He came up with his own cryptocurrency in 2013. The reason was the first boom of interest around bitcoin and the formation of the first “crypto-investors”: everyone around was discussing the novelty. Palmer decided to joke and created his own cryptocurrency to show everyone around that investing a lot of money in this unstable direction is absurd.

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Dogecoin is a fork of Luckycoin and Luckycoin is a fork of Litecoin. Therefore, they often simplify and write that Dogecoin is based on Litecoin. The name and image of the currency is also a joke: the cryptocurrency is named after the doge meme – a dog of the Shiba Inu breed.

The official announcement of the new cryptocurrency took place on December 8, 2013. The joke is launched into the world. True, as it turned out over time, the joke ceased to be such and the capitalization of the “meme” began to grow to hundreds of millions of dollars.

Unlike bitcoin (which was often attributed to drug traffickers), Dogecoin was thought to serve a good cause: charity. A foundation of the same name was launched, various charitable initiatives around the world were supported. It is also convenient to use Dogecoin to transfer funds between exchanges due to its speed and low cost.

Palmer himself left the project in 2015.

Reality

Despite the initial idea, the new cryptocurrency found life and began to grow in price. In December 2020, the Dogecoin rate was $0.00025 per coin, and a month later it was already $0.0023: an increase of 10 times in just a month. Over time, growth slowed down, and the cryptocurrency became as volatile as others: either a rapid rise, or a long fall. And yet, the capitalization of the comic project for a long time was about $400 million. Until the account went into billions. The first major jump in the value of the cryptocurrency occurred along with the entire market: at the beginning of 2018, one Dogecoin was worth $0.0183, dropping another zero. Since its inception, the cryptocurrency has risen in price by more than 7000%, has been traded on all popular exchanges and has consistently been included in the list of the most popular cryptocurrencies.


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