It has probably not escaped your notice that Elon Musk is an outspoken supporter of Bitcoin. Tesla (NASDAQ:) was once worth about $2 billion before selling much of it. He also regularly tweets about dogecoin.
Elon Musk’s $44 billion deal to buy social media platform Twitter has thrown the crypto world into disarray. It can have significant implications for digital assets. Because 1+1=2 right?
There is a high probability that Musk will bring crypto to Twitter. In fact, Musk has been awarded $500 million from cryptocurrency platform Binance to fund his new acquisition, and he has recruited influential crypto investor Andreesen Horowitz and former Twitter executive Sriram Krishnan to join his new team.
Maxim Manturov, Head of Investment Advice at Freedom Finance Europe, says: “Twitter was only profitable in 2018-2019 with revenue between $1 and $1.5 billion. It has lost $1.1 billion in 2020 and another $220 million in 2021. In addition to financial concerns, the purchase of Twitter has also raised a number of political concerns. The social network has become a powerful tool for political education, replacing party meetings. Even the fact that Musk is a rather unorthodox public figure, he actively begins to argue that Twitter is improving, introducing new non-standard features, opening up algorithms to increase trust, allowing advertisers to pay for social network services and making it private. the company.”
Crypto payments via Twitter
If Musk really wants to integrate cryptocurrency payments into Twitter, a digital wallet would be important. But for now, it’s only rumours, and there are serious doubts as to whether a crypto integration on Twitter is on the roadmap.
One of the options is to use dogecoin on Twitter. I hear you thinking: “Dogecoin? It’s a meme coin right? “, it’s true, but Musk is a big fan of this cryptocurrency. This ‘relationship’ has doubled the value of Dogecoin. In addition, you should not forget, that Dogecoin can process transactions much faster than bitcoin.
It is important to know that Elon Musk has used this trick before. Musk has made it possible for Tesla to buy clothes with Dogecoin. There is a good chance he will use this trick again. But don’t let this affect your investments in crypto. Crypto has a high risk, if you are looking for an investment with less risk, it is interesting to buy ETFs.
Influence Elon Musk in Crypto
Do you still remember the time in 2021 when Elon Musk had a big impact on cryptocurrency prices? Mr. Musk only had to send a tweet and the price exploded. A tweet about Dogecoin caused the price to increase by no less than 51%!
For a moment, it seemed as if the price of crypto was completely controlled by Elon Musk, the richest man in the world. Fortunately, the market will continue to mature with further regulation and innovation. If so, celebrity influence will continue to decline, as it did for Musk. While crypto investors still love the occasional meme coin, blockchain technology has shown its potential, attracting real investors and billions of dollars in institutional capital.
How Can Crypto Help Twitter?
Bitcoin uses the proof-of-work approach, making it the most open and secure platform on the Internet. In the past, PoW was used to combat spam email. This philosophy can also be applied to Twitter’s new subscription model. If users pay a monthly fee, they are less likely to be bots. Bots and click farms are the biggest problem according to Elon Musk.
It remains to be seen whether Musk’s Twitter will prioritize cryptocurrency, but at least one of the deal’s major investors is lobbying for it. Binance, a cryptocurrency exchange, invested $500 million in the $44 billion acquisition to help Twitter adopt Web3. Binance CEO Changpeng “CZ” Zhao has promoted his Binance Pay platform as a payment option for Twitter. In addition, Musk has hired several people to help him, such as David Sacks and Sriram Krishnan. David Sacks is one of the best-known Silicon Valley entrepreneurs and COO of Paypal, who happens to be a payment service and crypto enthusiast. Sriram Krishnan is an investor, technologist and engineer. And very involved in a16z crypto. A16z crypto is a $300 million venture capital fund that invests in crypto companies and protocols. He invests and is interested in the combination of consumer technology and crypto.
When you examine those involved in Twitter, they have one thing in common: crypto and payments. Additionally, Musk predicts that Twitter will generate $1.2 billion in revenue by 2028 with the goal of being less reliant on advertisers. He is known for his innovative and entrepreneurial strides, which we should applaud. It is expected that one day we will have a decentralized social media, but until then we are still dependent on the current social media channels.