How Elon Musk’s Tweets Influence the Cryptocurrency World

Living in this modern, digital world comes with many advantages, but it also has its downsides. As for the benefits, just look at all the new opportunities that were before possible only in sci-fi movies. Of course, the more technology advances, the more chances for us, humans, to become lazy, as to why bother and do something when a machine, program, or robot can do it. That’s just one flaw of it all, but let’s leave that aside for a moment and focus on what the overall hype has been about for more than a decade now.

The financial change called cryptocurrency

Source: flipboard.com

Cryptocurrency or digital money, no matter how you called it, revolutionized the world we live in, as it not only shook but changed our financial and monetary system. Some will argue whether it changed it for the better or worse, but all the evidence is saying that it changed it for the better. Namely, today you don’t have to go to the bank to make some transaction or withdraw money, and yes, e-banking also offers the same service but with one huge flaw, the banks act as the third party. With cryptos, we avoid banks acting as a third party, and we all know how swiftly crypto transactions are because of that. Like with anything that’s still at its beginning, cryptos too have some flaws, and the most talk has been about crypto security and volatility. On the other hand, what many often overlook is the fact that even one single tweet, coming from the right person, can have an immeasurable effect on the crypto market.

Safety and volatility are past topics

It’s pointless to say how cryptocurrency comes with great risk, safety-wise, as it’s simply not true, and if any industry is spending more time and effort to enhance the security and safety of all the users and their money, it’s this one. Volatility is yet another factor that troubles many, and that’s simply because no one can precisely predict what will happen next. Some experts may say that the value of BTC, for example, will rise, but for how much, well, that’s a stretch and more a lucky guess. But, like any other market, this one too comes with certain risks, which is why we should pay more attention to social networks, and what famous people are saying, or in this case, tweeting.

Don’t believe us? Well, perhaps the best example of that is Elon Musk, as his tweets really affect the crypto market. It’s not the same when someone is not that influential and Musk makes some comment, as everything he says comes with a certain weight, and that’s what happened this year.

How it all started

Source: thetimes.co.uk

When we talk about Elon Musk and his relationship with cryptos, we need to mention how it all started. At the beginning of his tweeting, many people thought that he is another person, or better said, the founder of Bitcoin. You will probably wonder why people thought that. Well, in the very beginning, Musk was fascinated with Bitcoin, and he was tweeting a lot about it, and his tweets were all positive, and he was convinced that BTC was a good thing back in 2014. The positive thinking about digital money did not last long, and until 2019 Musk was sure that it is not such a good thing as he thought before.

Elon Musk and Tesla tweets

Once Tesla decided to invest $1.5 billion in BTC and Musk tweeted that the company will accept payments in digital money, the BTC value has reached the best price. Because of these tweets, many new investors decided to become a part of the crypto market. The investors believed that if Bitcoin is good enough for one big company such as Tesla, it is good enough for them too. The problem occurred when Elon tweeted that Tesla is quitting accepting payments in BTC because mining requires a lot of energy, which is not good for the planet. It made sense, and at that moment, the price of this popular crypto fell by almost half of its highest price. It is the main reason why many investors decided to avoid this market and invest their money in some other currency. The next Elon’s tweet that has an impact on Bitcoin’s price was a few months ago when he talked about his support to the miners who want to change the mining process and make it much healthier for our environment. After this statement, Bitcoin price raised again by almost 20%, which is a huge number considering the earlier fall of almost 50%.

Does he really have that huge impact on the crypto market?

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People around the world believe that Elon Musk is the man who has the biggest impact in the crypto world and that his tweets can change the price of cryptos and people’s opinions about them. If we think for a while, we will see that the truth is much different and that each currency has its ups and downs, and it is an absolutely normal cycle. Okay, we saw that, but how does Musk exactly know what will happen next? If we follow the statistic, we will also be able to predict the rise and fall of some currencies, and he used statistics for his tweets. There is no doubt that his tweets are changing something because he has many followers who follow him, and because of that, he is the trigger for every change, no matter if he wants that or not.

To summarize

Now you should understand how important it is to follow crypto news to keep up with the flow of information, as it is the only way to make successful predictions and invest in cryptos wisely. If you are not up to date with new information, it is impossible to expect any success. That’s why it’s always good to verify some info before you trust it, and finding a reliable source of information like ibtimes.co.uk is of vast importance.

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