Elon Musk’s Complex Journey with Cryptocurrency: From Skepticism to Major Influence
Elon Musk’s relationship with cryptocurrency has evolved from early skepticism to becoming one of its most high-profile advocates. His journey mirrors the rise and volatility of the cryptocurrency market itself, filled with controversies, shifts in opinion, and sudden bursts of influence.
Before becoming the tech mogul we know today, Musk had already made a mark as a visionary entrepreneur. Originally from South Africa, Musk co-founded PayPal in 1998, revolutionizing online payments. As the CEO of Tesla, SpaceX, Neuralink, and The Boring Company, he’s driven innovation in industries ranging from electric vehicles and aerospace to neurotechnology and AI. His early involvement in PayPal and experience with digital finance set the stage for his eventual engagement with cryptocurrencies, a technology designed to make online payments decentralized and borderless.
The Early Stages: Elon’s Scepticism
Elon Musk's first mention of cryptocurrencies dates back to March 2014, when he responded to a question on Twitter about Bitcoin by referencing the mysterious figure of Satoshi Nakamoto, the pseudonymous creator of Bitcoin. Musk’s response was dismissive yet playful: "Well, now that Satoshi Nakamoto has been discovered, I guess it is case closed." This was likely in reference to an article from Newsweek that incorrectly claimed to have identified Nakamoto’s true identity—a claim that was later debunked.
By October 2014, Musk was asked about Bitcoin during an interview with Walter Isaacson at Vanity Fair’s New Establishment Summit. Musk noted that while Bitcoin “was probably a good thing,” he believed it would ultimately be used for illegal transactions. Musk didn’t see this as inherently bad, suggesting that some things that are illegal may not necessarily be wrong. However, he also made it clear that he didn’t own any Bitcoin, reinforcing his skepticism towards the cryptocurrency.
Bitcoin’s price had peaked at over $1,100 in late 2013, but by 2014, it entered a prolonged bear market, continuing to fall for several years. Musk largely refrained from commenting on cryptocurrencies during this “crypto winter,” until the market began to recover in late 2017.
The “Elon Musk Invented Bitcoin” Rumor
In November 2017, as Bitcoin surged past the $8,000 mark and neared its all-time high of almost $20,000, a Medium article titled "Elon Musk Probably Invented Bitcoin" gained attention. The author, Sahil Gupta, suggested that Musk’s deep understanding of economics, cryptography, and C++ programming hinted that he might have been behind Bitcoin’s creation. Musk quickly dismissed the theory, stating on Twitter, “Not true. A friend sent me part of a BTC a few years ago, but I don’t know where it is.”
Though Musk was briefly linked to Bitcoin’s creation, he consistently denied the claim, even mocking it in December 2017 by sharing a link to a satirical The Onion article about his supposed role in inventing Bitcoin.
The Crypto Scam Incident
Musk’s involvement in the crypto world took a darker turn in November 2018 when hackers targeted two verified Twitter accounts (Matalan and Pathé UK), changing their names and images to impersonate Musk. These fake accounts were used to promote a cryptocurrency scam, encouraging users to send cryptocurrency to receive a purported “giveaway” from Musk. The fraudsters managed to steal around $157,000 before Twitter took action. Although this incident wasn’t directly Musk’s fault, it added to the growing complexities of his relationship with crypto.
A Shift in Attitude: 2019 and Beyond
Musk’s attitude toward cryptocurrency started to change in 2019. During a podcast with Ark Invest, Musk called Bitcoin’s underlying structure “quite brilliant” and acknowledged Ethereum’s merits, although he was cautious about its use in Tesla’s energy-conscious business model due to the high computational cost of crypto mining.
The Dogecoin Era
In April 2019, Musk first mentioned Dogecoin, a meme-inspired cryptocurrency, tweeting that it was his “favorite cryptocurrency.” The tweet caused a significant price jump, with Dogecoin rising by over 100%. Since then, Musk’s tweets about Dogecoin have had a significant impact on the cryptocurrency’s price, with some of his posts causing rapid surges or declines.
Musk’s influence over Dogecoin continued to grow. In 2020, a single word—“Doge”—tweeted by Musk sent the price of Dogecoin soaring by 120% over a few days. However, he’s also criticized Dogecoin’s unequal distribution, where a large portion of its supply is held by a few addresses, leading to price fluctuations.
Tesla’s Bitcoin Investment and the 2021 Fallout
The most significant chapter of Musk’s relationship with cryptocurrency came in February 2021, when Tesla announced it had purchased $1.5 billion in Bitcoin and would accept it as payment for its vehicles. This announcement, combined with Musk’s growing presence in the crypto world, contributed to Bitcoin’s price surging to an all-time high of around $58,000 in February 2021.
However, Musk’s relationship with Bitcoin soured in May 2021 when he tweeted that Tesla would no longer accept Bitcoin as payment, citing concerns over Bitcoin’s energy consumption and environmental impact. His tweet sent Bitcoin’s price plummeting by around 20%, and many crypto enthusiasts criticized him for fueling market instability. In hindsight, Musk’s remark led some to question whether Bitcoin could truly function as a stable currency if its price could be swayed by the actions of a single individual.
What Cryptocurrency Does Elon Musk Own?
Musk has not publicly confirmed owning any significant amount of Bitcoin, despite Tesla’s large purchase. However, in interviews, he has mentioned that he personally owns some Bitcoin, as well as small amounts of Ethereum and Dogecoin. His holdings are mostly for personal use, and he’s said that he owns “a bit of Bitcoin” and “some Dogecoin.”
Did Elon Musk Invent Bitcoin?
No, Elon Musk did not invent Bitcoin. The true identity of Bitcoin’s creator, known by the pseudonym Satoshi Nakamoto, remains one of the most enduring mysteries in the crypto world. Although Musk has frequently been speculated as Nakamoto due to his technical expertise and involvement in the cryptocurrency space, he has repeatedly denied any role in the creation of Bitcoin.
What Is the Name of Elon Musk’s Coin?
Elon Musk does not have his own cryptocurrency. However, his influence over Dogecoin is significant. While Musk has jokingly referred to himself as the “DogeFather” and promoted Dogecoin in several high-profile tweets, he has not created his own coin or issued a new cryptocurrency.
Did Elon Musk Start Dogecoin?
No, Elon Musk did not create Dogecoin. Dogecoin was launched in December 2013 by software engineers Billy Markus and Jackson Palmer as a joke or meme cryptocurrency. However, Musk’s playful tweets and support for Dogecoin have made him one of its most high-profile backers, and his influence has helped drive its price surges.
What Does Elon Musk Say About Cryptocurrency?
Musk has expressed a complex and evolving view of cryptocurrency. He has praised Bitcoin for its innovative technology, calling its underlying structure “brilliant,” and he has shown significant interest in its potential as a store of value. However, Musk has also voiced concerns about its environmental impact, particularly regarding Bitcoin’s energy consumption. His views on Dogecoin have been more favorable, largely because of its lower energy usage and potential for improvement.
How Much Bitcoin Does Elon Musk Own in 2023?
While Musk has never disclosed the exact amount of Bitcoin he owns, it is known that Tesla holds a significant amount. As of early 2023, Tesla's Bitcoin holdings were valued at over $200 million. Musk’s personal holdings are believed to be much smaller, though exact figures have not been confirmed.
Does Elon Musk Own XRP?
As of now, there is no evidence to suggest that Elon Musk owns XRP (Ripple). While Musk has been vocal about Bitcoin, Ethereum, and Dogecoin, he has not publicly endorsed XRP or shown any significant interest in it. XRP, a digital asset associated with Ripple Labs, has faced legal challenges from the U.S. Securities and Exchange Commission (SEC), which could be one reason why Musk has avoided involvement with it.
Conclusion
Elon Musk’s relationship with cryptocurrency has been dynamic and influential, evolving from early skepticism to active involvement. While he has made significant contributions to the crypto market, particularly through his support of Dogecoin and his company Tesla’s Bitcoin purchase, his influence remains controversial, with some critics arguing that he has introduced unnecessary volatility into the market. Whether Musk’s long-term role in crypto will continue to grow or fade remains to be seen, but one thing is clear: his impact on the world of digital assets cannot be ignored.
Read that "
0 Comments