Elon Musk has been hyping cryptocurrencies for years, especially meme cryptocurrencies, Dogecoin. So why does Elon Musk like dogecoin and whether Elon Musk owns Dogecoin? If you have those concerns and doesn't have solution for them, this article is for you.
Why does Elon Musk like dogecoin?
Billionaire Elon Musk, CEO of SpaceX and Tesla, regularly tweets about different cryptocurrencies, and in doing so appears to have affected their prices. Throughout 2021, the price of an altcoin called the Shiba Inu appears to have risen several times after Musk has repeatedly tweeted pictures of his Shiba Inu puppy.
But on Sunday, Musk clarified that he does not own any Shiba Inu coins, he only owns Bitcoin, Ethereum and Dogecoin. "That's it," he said.
The 50-year-old entrepreneur did explain the main reason for his decision to support Dogecoin last year, having previously mentioned several times that he is working with developers. "I've talked to a lot of people on Tesla's production line, or building rockets on SpaceX's own Doge," Musk wrote on Twitter. "They're not financial experts or Silicon Valley technologists. That's why I decided to support Doge — it feels like a cryptocurrency for people."
Back in May 2021, Musk didn't hesitate to joke that Dogecoin could actually become a reserve currency in the future. "The point is that Dogecoin was invented as a joke, essentially to make fun of cryptocurrency," he told TMZ. "Fate loves irony. What is the most ironic ending? What started as a joke currency turned into real currency. Go to the moon!" Just a few months ago, Musk said in an interview with Time Magazine that he would prefer to introduce Dogecoin as a transaction currency rather than the more popular Bitcoin.
"Fundamentally, Bitcoin is not a good substitute for transactional currencies," Musk said. "Although it's a silly joke, Dogecoin is better for trading. Bitcoin transaction volume is low, and the cost of a single transaction is high." "At least on a spatial level, it is suitable as a store of value. But fundamentally, Bitcoin is not a good substitute for transactional currency. “The total transaction flow you make with Dogecoin on a daily basis has a higher potential than Bitcoin.”
Does Elon Musk own Dogecoin?
Despite announcing that Tesla sold 75% of its Bitcoin holdings in the second quarter, CEO Elon Musk revealed in a quarterly investor call that the company also holds Dogecoin but did not sell any of those assets.
"We didn't sell any Dogecoin; we still own it," Musk said by phone. Musk has detailed in the past that he personally owns Dogecoin, but has not indicated that Tesla does, although the electric car company has been accepting Dogecoin as payment for certain goods on its website. It's unclear if the company simply held the tokens used to buy goods, or if it specifically bought the dog-themed “joke” cryptocurrency that Musk has repeatedly expressed his support for on Twitter. The company revealed that it now has $218 million worth of digital assets after selling $963 million worth of bitcoin. Most of that $218 million could be its remaining bitcoin.
Tesla reportedly had around 42,000 bitcoins before entering the second quarter, so after selling 75%, it should have around 10,500 bitcoins by the end of the quarter. Now, to determine how much of the total holdings are bitcoin, we must know exactly when the total holdings are bitcoin snapshot was taken. Assuming it's the last day at the end of the fiscal second quarter in June, so 1 bitcoin trades between $18,750 and $20,300 throughout the day, these 10,500 coins represent about 1.97 of its total "digital assets" $213 million to $213 million " would be Bitcoin.
The napkin calculation leaves less room for Dogecoin holdings, although merchandise sales alone may still be a healthy amount. Apart from Bitcoin and now Dogecoin, Tesla has not disclosed its holdings of any major cryptocurrencies.
I hope this article will help you to give some insights about why does Elon Musk like dogecoin and whether Elon Musk owns Dogecoin. In addition to being a "joke" and a "meme coin," Dogecoin was created as a peer-to-peer digital currency that can reach a wider audience than Bitcoin.
