Elon Musk Considers Using Bitcoin (BTC) on X
Elon Musk, the CEO of Tesla and SpaceX, has expressed openness to the idea of integrating Bitcoin (BTC) into his social media platform, X, formerly known as Twitter. Musk shared his thoughts during a conversation with ARK Invest CEO Cathie Wood, in a space on X regarding the company’s spot Bitcoin ETF.
Musk clarified that while he is open to using Bitcoin on X, he does not believe the crypto asset is suitable for payments. He stated, “I don’t spend a lot of time thinking … about Bitcoin.” Musk also revealed that his spaceship company, SpaceX, holds BTC in its portfolio, and he personally owns Dogecoin (DOGE).
Speaking with cathy wood on the ARC ETF approval spaces Elon Musk says hes "open to using #Bitcoin on X but thinks about it very little"pic.twitter.com/cHDIgVJWH4
— Crypto Macro (@cryptomacro14) January 11, 2024
The billionaire entrepreneur initially objected to using Bitcoin as a currency on Mars, citing the extended time it takes to settle transactions. However, after considering the challenges, Musk concluded that using Bitcoin on Mars might be feasible.
Musk’s openness to Bitcoin integration comes as part of his broader plan to transform X into an “everything app”. This transformation includes the launch of an in-app payment feature, which is expected to roll out in the second quarter of 2024. The integration of crypto payments could give X a competitive edge over other platforms.
Despite Musk’s openness to Bitcoin, he has expressed that he rarely thinks about the crypto asset. This has led to speculation about which cryptocurrency might be favored on the X platform. Given Musk’s known support for Dogecoin, some in the online community speculate that DOGE could be the future currency of the “everything app”.
It’s important to note that the integration of cryptocurrency payments on X is subject to regulatory approval. Critics have raised concerns about the increased regulatory scrutiny on cryptocurrency payments, especially in the United States.
What are the potential implications of Elon Musk using Bitcoin on X
The integration of Bitcoin into X could potentially increase the cryptocurrency’s adoption and usage. As a high-profile entrepreneur with a large following, Musk’s endorsement and use of Bitcoin on a major social media platform could lead to increased interest and investment in Bitcoin and possibly other cryptocurrencies.
For users of the X platform, the introduction of Bitcoin could offer a new way to transact and engage with the platform. It could enable peer-to-peer payments, tipping, and other financial interactions within the social media environment, enhancing the user experience and utility of the platform.
How has Elon Musk’s involvement with bitcoin affected its value
Elon Musk’s involvement with Bitcoin has had a significant impact on its value. His tweets and public statements have been shown to cause substantial price movements in the cryptocurrency. For instance, individual tweets from Musk have been found to raise the price of Bitcoin by 16.9% or reduce it by almost 11.8%. Similarly, when Musk changed his Twitter bio to indicate support for Bitcoin on January 29, 2021, the price of Bitcoin increased by almost 17%.
Musk’s influence extends beyond his personal comments. His company, Tesla, has also played a role in affecting Bitcoin’s value. In February 2021, Tesla announced that it had bought $1.5 billion worth of Bitcoin, which led to a significant increase in the cryptocurrency’s price. Tesla’s investment in Bitcoin resulted in about $1 billion in paper profits for the company. However, when Musk announced in May that Tesla would no longer accept Bitcoin due to environmental concerns, the price of Bitcoin fell from $56,800 to $49,500.
Conclusion
While Musk has expressed openness to the idea of using Bitcoin on X, the specifics of how this would be implemented and which cryptocurrency might be favored remain uncertain. As the plans for X’s transformation into an “everything app” continue to unfold, the role of cryptocurrency in this new platform will undoubtedly be a key area to watch.
Zornitsa is the Editor-in-chief at Coinlabz. She is involved in researching the impact of blockchain technology and the way crypto is transforming peoples’ perceptions of finances.
