Why does Elon Musk support this cryptocurrency?
Any post by Elon Musk on Twitter tends to make a big impact. The billionaire has now talked about Dogecoin, a cryptocurrency that has increased in value by more than 50% today February 4th.
Dogecoin rose to $ 0.05798. According to Coindesk, the blockchain and cryptocurrency site.
That was enough with this simple phrase to increase cryptocurrency actions. However, this wasn't the only case in which Elon Musk's words acted like a butterfly effect.
In fact, his tweets pushed up the prices of some companies like GameStop, Etsy, and CD Projekt.
And it is this that Elon Musk was repeating his preference for Dogecoin; He even posted a lion king-inspired photo with a retouched photo of himself raising the Dogecoin symbol, represented by a Shiba Inu dog, into the sky.
Why does Elon Musk support Dogecoin?
First of all, let's define what Dogecoin is. This cryptocurrency was created by Billy Markus, a former IBM programmer and engineer.
The idea was to tinker with the Bells, a Nintendo Animal Crossing-based coin, hoping to reach a wider user base of investors that created Bitcoin.
Meanwhile, Jackson Palmer, Adobe Systems worker and friend of Billy Markus' envisioned the idea of creating Dogecoin until it was finally launched.
Why does Elon Musk support her? In a recent interview, the billionaire admitted that he enjoys making jokes about this cryptocurrency; The point is that every time a Tesla founder mentions a company, its value changes instantly.
Despite the fact that this cryptocurrency has a comic origin, interest in it has increased significantly and not only because of the recent tweet from Elon Musk.
On January 29, a group of users tried to duplicate this virtual currency, and hours later, it had already increased by 800% against the dollar.
Dogecoin, which started as a joke in 2013, is now the 12th most valuable cryptocurrency by market value, according to CoinMarketCap.
In this context, Musk recently stated that the result would be "both amusing and ridiculous" if Dogecoin becomes the "Earth's currency of the future".