Elon Musk Goes Full Bitcoin, How Significant Is That?

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Last Updated on 23 March 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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There were so many great stories to note and write last week that we of course couldn’t do them all. One of the more notable happenings which may be overlooked as trivial but certainly isn’t, is the fact that Tesla and SpaceX CEO, and also the current richest man of the world, Elon Musk changed his Twitter bio to a single word: Bitcoin.

In Chanspeak, which is all the rage since the WallStreetBets episode of last week, this fact would be worded as follows: Elon just went full Bitcoin (in reference to Trophic Thunder).

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Ultimate Memelord

The man who was previously known as the CEO of Dogecoin and the Ultimate Memelord (Musk sends out very funny memes from time to time) chose to follow Twitter CEO Jack Dorsey’s lead and said on Friday that it was inevitable upon doing so.

The reaction from the internet was swift and sound, with the Bitcoin price gaining some 10% in a few hours only and $380 million worth of short positions on Bitcoin being liquidated.

YouTube video

Although the direct reason for Musk choosing to change his bio in this manner was probably in response to the whole Robinhood versus Reddit versus Wall Street saga, the fact that Musk was able to liquidate short positions (held on crypto exchanges like Binance, ByBit, Deribit and OKEx) must have been a happy side-result as the man has a long history of going up against hedge funds and their short positions himself.

Elon Musk a supporter of Bitcoin

Yesterday, Elon Musk said on Clubhouse that he is a supporter of Bitcoin and that he is a bit late to the party. He first discovered Bitcoin in 2013 and he should invested earlier in this technology. He thinks Bitcoin is a good thing and “it’s on the verge of broad acceptance by conventional finance”.

Significance

During a Q&A initiated by Scott Melkert, the CEO of the FTX platform, Sam Bankman-Fried, claimed that the fact that Musk had done so was significant and would have long term impact.

That’s the reason that Elon put Bitcoin in his profile, and as it happens, Elon he has a lot of money right now. And what happens if he, and literally just he, the only impact of this, that he decides to buy Bitcoin and nothing else, he has like 150 billion dollars. If he and Tesla or whatever invest in Bitcoin, and Elon Musk probably tweeting about all the Bitcoin s he’s buying, and he’s not going to be the only one who does it if he does it, right?

Bankman-Fried went on to explain that:

I think it’s one of these weird things where like ten people in the world have unbelievably large impact with random decision they make, and he’s one of them right now.

Let’s see if in five years from now the Musk Bitcoin Twitter bio change will be written in the historic overview of Bitcoin’s rise to a global standard. We sure hope it will.

JanPietruszka / Depositphotos.com