This has meant that risky investments like cryptocurrencies have lost their sheen, something that is evident in the drastic price drops we have seen for the cryptocurrency market as a whole. From their record three trillion valuations, crypto markets have shrunken to less than a third in less than a year, and the poster boy of cryptocurrencies, Bitcoin, has lost loyalists like Elon Musk.
Tesla’s tryst with Bitcoin
In early 2021, Musk’s company Tesla invested $1.5 billion in Bitcoin and a month later also began accepting the altcoin as payments for its electric vehicles. It was only after public backlash over environmental concerns about Bitcoin usage that Tesla rolled back its decision. However, it retained its Bitcoin holdings while continuing to accept the cryptocurrency for merchandise payments.
After the cryptocurrency slump and the economic uncertainty that accompanied though, the company liquidated almost all of its Bitcoin holdings last month, Forbes said in its report. However, Musk continues to retain his faith in Dogecoin, a cryptocurrency he has supported many times over in the past.
Why does Elon Musk like Dogecoin?
In an interview with the Full Send Podcast, Musk revealed that he likes Dogecoin because the cryptocurrency does not take itself too seriously. Instead, it has “memes and dogs” and “a sense of humor.”
Musk believes that the “memecoin”, as it was originally designed to be, has a better “total transactional throughput capacity” when compared to Bitcoin. This is why Musk, who has earlier supported Dogecoin, plans to continue buying the Bitcoin rival in the future as well and will continue to support it publicly.