Monday, February 15, 2021
Tweet causes the price to fall
Musk sends cryptocurrency downhill
Elon Musk is a fan of cryptocurrencies. Thanks to warm words from the Tesla boss, the Dogecoin has climbed to a record high in the past few days. But that is over now. A new tweet from Musk causes the digital currency rate to crash again just as quickly.
Elon Musk has with a tweet once again influenced the course of the cryptocurrency Dogecoin. "If big Dogecoin holders sell most of their coins, that has my full support. Too much concentration is the only real problem in my eyes," wrote the head of the electric car manufacturer Tesla on Sunday.
When asked by a Twitter user whether this would increase or weaken the value of the cryptocurrency, Musk replied that the price would initially fall before a long-term high. Dogecoin slumped around 13 percent in the past 24 hours.
A well-known proponent of cryptocurrencies, Musk has been speaking out regularly about the recent retail investment frenzy, driving the prices of Dogecoin and shares in US video game chain GameStop soaring. The announcement that Tesla was investing $ 1.5 billion in the oldest and most important digital currency, Bitcoin, and would soon accept it as a means of payment, also triggered a rally.
Dogecoin is derived from the cryptocurrency Litecoin and was originally intended as a parody of Bitcoin. Unlike there, the number of digital coins that can be generated by "mining" is not limited. Users provide computing capacity for the encryption of transactions and are rewarded in the corresponding crypto currency. Since the encryption of Dogecoin is simpler, transactions can be processed faster than with Bitcoin or Litecoin.
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