Bitcoin and cryptocurrency values have bounced significantly in recent days. Recently bitcoin briefly fell below $30,000 before rebounding.
The meme-based dogecoin, Elon Musk’s pet project that has shot into the cryptocurrency top ten by the value this year. Dogecoin outperforms bitcoin price swings.
Investors are bracing for a closely-watched live chat between Musk and Twitter chief executive Jack Dorsey, The ₿ Word. The event organisers assure “nothing is off-limits.”
Tesla and Bitcoin
Since ploughing $1.5 billion of Tesla’s cash into bitcoin early this year, Musk has alienated most of the bitcoin community with his irreverent attitude toward crypto. Musk first blasted the event on Twitter before agreeing to attend.
In recent months, Musk has addressed so-called bitcoin maxis—those who argue against other cryptocurrencies save bitcoin—by inviting coders to offer dogecoin upgrade ideas and pledging that the doge meme coin will soon “defeat bitcoin hands down.”
The Rise of Dogecoin
Since the beginning of 2021, the price of dogecoin has risen by thousands of per cent. This is due to the investors pouring money into the meme coin in the wake of trading limitations imposed on viral meme stock Gamestop in January. For years, Dogecoin tokens were worth fractions of a cent until soaring to an all-time high of $0.73 in April. This is all thanks to a Musk-fueled pump.
Bitcoin’s Meltdown
The 2021 bitcoin price rise, which saw bitcoin rocket to approximately $65,000 per bitcoin before plunging. This was partly fueled by anticipation that Tesla’s bitcoin stake would start a surge of corporate and institutional bitcoin purchases. However, it did not materialise.
Bitcoin’s April meltdown, which contributed to the loss of almost $1 trillion in total crypto market value, was triggered in part by Musk’s surprise revelation that Tesla will discontinue its bitcoin payment support, which it had implemented just a few weeks before. Musk emphasised bitcoin’s staggering energy demands in a statement, stating that if the bitcoin network expanded its use of renewable energy, Tesla’s bitcoin support would resume.
