How dependent is the crypto space on Elon Musk?

Since taking over Twitter, Elon Musk has held one of the most important communication platforms in the world. In the blockchain scene, that reignited an old debate: how important is the tech mogul to crypto? A danger – or indispensable?

Elon Musk’s position has been the subject of controversy in the community for a long time. Proponents argue that its enormous public effectiveness and general sympathy for Bitcoin and Co. has a positive influence on the acceptance of cryptocurrencies. The financial clout of his tech empire is driving institutional money into the market. It paves the way for larger investments from other companies. Cardano Founder Charles Hoskinson spoke out optimistic even before the takeover: “If Elon buys Twitter, he will probably introduce 200 million people to crypto. He has intentions of integrating crypto in some form.” But there are dissenting voices.

Elon Musk vs. Bitcoin’s rationale

Skeptics put forward strong arguments. If Elon Musk stands for innovation and progress, he also stands – or above all – for centralized power. The bundling of decision-making power exemplified by the person of Elon Musk stands in stark contrast to the narrative that has been firmly anchored in the Bitcoin whitepaper’s agenda since it was published. Namely a decentralized and democratic distribution of power. The legitimacy of the Bitcoin network is fed to a large extent from the decentralized idea and is therefore difficult to compatible with such monocentric power structures. Former head of Twitter’s “trust and safety” department, Yoel Roth, has moved on regarding his resignation at a conference in Florida Position: “One of my limits was crossed when Twitter started being governed by dictatorial decrees rather than policies.”

Twitter as a precedent?

The importance of Twitter for the crypto sector cannot be denied. Social Media Watchblog’s Simon Hurtz had his say in one Interview with the NDR Regarding this: “Although it is by far the smallest network if you compare it with Facebook, Instagram or TikTok, I would still call the platform the most important – at least for politics and news – because it is so much a communication channel for politicians: established inside or other prominent personalities”. This also applies to big figures in crypto space. A significant part of the scene’s communication today takes place via the Twitter infrastructure.

Decentralized alternatives

The acquisition of Elon Musk was the straw that broke the camel’s back for some users. Accounts were deleted or switched to alternatives. The solution of “mastodon“. The developer Eugen Rochko founded the social network in 2016. The open source project is a microblogging service similar to Twitter. The key difference: Mastodon is decentralized. The success of the company stands and falls with the acceptance of the platform. Mastodon currently has around 230,000 active user profiles. Unfortunately, it is not known how many of these are accounted for by crypto sympathizers. Here, too, it is ultimately the collective that decides which platform will prevail in the long term.

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