Elon Musk is a name that has become quite big and popular, often associated with high-tech inventions. With over 55 million followers, the CEO of Tesla, SpaceX, and a firm believer in cryptos, Musk has made a huge impact on all of us through his tweets and plenty of interviews.
Did you notice how every time he tweets about cryptocurrencies, the market seems to react and follow along? In fact, he can make a dramatic spike and difference in its volume. Let’s not forget that Elon also tweeted out that you can pay for your Tesla in Bitcoin a year back, which did intrigue people. So, how big is his name, how influential is he, and what can we expect to see in the future? Keep on reading and find out more down below!
Bitcoin was created in 2009 and is a pioneer of global and well-known cryptos, still undefeated to this day. The truth is that Elon Musk didn’t show any interest in this virtual currency. In fact, he didn’t talk about it at all till 2020. All of a sudden and in February of 2023, he announced that Tesla bought coins worth $1.5 billion. This helped the cryptocurrency go through the roof, making it reach historical and impressive numbers overnight. Not only that he did an impressive move with Bitcoin, but he also made a bold move by tweeting out that he is also getting Shiba Inu in March 2023. He went for the name Floki. Then on September 12 by tweeting all of this out, Floki Inu rose by 1,000 percent by Sep 15.
What is and how big is the Musk effect?
After Tesla bought BTC the cryptocurrency rose by 20 percent in one day. This is one of the biggest moves to this day. However, what happens when one person is so influential and has that amount of power?
Well, since cryptocurrencies are fairly volatile they can add fuel to the fire. The truth is that if you want to invest in cryptos for a long time, it is not advisable to buy and sell on an impulse. In fact, be smart and cautious with your decisions. If Elon can dictate the route only with one press of a button it is highly advisable that you always read blogs, watch YouTube videos, pay close attention to the news, and listen to podcasts to stay informed.
What happens when Musk changes his mind?
In April, Tesla sold 10% of its Bitcoin holdings, causing panic among investors. This decision sent cryptocurrencies into a downward spiral, and Bitcoin fell to nearly $30,000. Musk became worried about the eco factor and was slowly getting detached from this crypto. Musk recently tweeted that Tesla would not be accepting Bitcoin until the process of mining Bitcoin becomes greener. The owner of the electric car company said that he was looking into other cryptocurrencies that used less than 1% of the amount of energy to mine than Bitcoin does.
In fact, did you know that over 60% of mining is done in China, meaning that coal is the number one type of energy production?! This just furthermore supports his theory, approach, and personal beliefs.
Should you be investing in Bitcoin, or crypto in general?
Bitcoin is the most valuable cryptocurrency that allows people to store and trade 100% anonymously. It is also the most common one that you will see pop everywhere. The forecasts for its success are high and up there, despite Elon’s interference.
Sure, he did make an impressive move back in January when he changed his Twitter bio to “#bitcoin,” and the price went up by about $6,000. The ability to manipulate a financial market with just a tweet is a power that very few have. You wouldn’t follow just everyone’s step or advice when it came to cryptos, right? But you do follow Musk simply because he is an intellectual, and a billionaire who knows his niche.
Top 3 tips to consider when investing in Bitcoin
1. Look at your risks
With any form of trading, you have to be cautious. This is because the market itself is volatile. In fact, you should never invest more than 2% of your total pot into day-to-day trading. This rookie rule will help you out in the long run.
2. Keep your eyes open
Cyberattacks are popular nowadays, unfortunately. The truth is that you can’t do a lot about them aside from being cautious and setting up your security levels high. One way to do so is to set up a BTC wallet. Remember your password and be prepared for any cyber attacks.
If you are interested in investing in cryptocurrency but are concerned about market manipulation and volatility you can always invest in ETFs. ETFs are considered to be low-risk investments because they are low-cost and hold a basket of stocks or other securities. The truth is that Bitcoin has fallen over 30% this month, but its value remains 300% higher than last year.
How to make a smart move?
Elon Musk questioning Bitcoin’s environmental impact did indeed play a role in affecting the investors’ sentiments. However, the market can’t crash and it will not be crashing anytime soon since it holds a high power. Eventually, it is up to you to make a smart choice and a proper decision when it comes to your future investments. In fact, you can get a BTC app that does the job for you, just click here!
The Bitcoin Prime app allows you to do the process a lot more effectively. Enjoy the software which is safe, fast, and reliable. This app is designed to support CFD (contract for differences) trading. When trading CFDs, investors are not buying or selling actual assets or stocks. Instead, they are simply predicting the directional movement of the price of an asset. Give it a go and see for yourself! Open a free account and start making smart moves.