Comprehensive report by The Paper reporter Cui Zhuzhu
On May 7, Beijing time, Tesla CEO Elon Musk retweeted a video titled "Musk says Dogecoin may become the future of cryptocurrency" on Twitter, and captioned the video saying that cryptocurrency is promising, but please invest with caution.
The video shows that Musk was surrounded by fans asking for autographs. Some fans asked whether Dogecoin can be expanded and is not limited like Bitcoin. Will this take away the value of traditional coins? Musk agreed.
Musk said that people should not invest their life savings in cryptocurrency, which is very unwise behavior. “Cryptocurrency is very likely to become the mainstream currency on earth in the future, but this is just speculation. There may be many mainstream currencies, and this idea is also a bit speculative. Don’t invest too much in cryptocurrency. I speculate that the best prospect among cryptocurrencies will be Dogecoin.”
Some fans asked him how he managed to see the price of Dogecoin surge after posting a tweet. To this, Musk did not respond directly, saying only that he should not take too many risks because of cryptocurrency.
Musk has discussed Dogecoin on Twitter several times, and the price of Dogecoin has risen along with his discussions. On April 1, Musk said that Space X would bring a Dogecoin to the moon, and Dogecoin subsequently rose by more than 14%.
It is worth mentioning that although Musk believes that Dogecoin may be the future of cryptocurrency, Tesla insists on investing in Bitcoin. In February this year, Tesla announced that it had purchased $1.5 billion in Bitcoin. On March 24, Musk announced on Twitter that Tesla vehicles could be purchased with Bitcoin. He also said that Bitcoin payments will be available outside the United States later this year. Tesla directly operates Bitcoin nodes using only internal open source software. Bitcoin paid to Tesla will be retained as Bitcoin and will not be converted to fiat currency.
Tesla’s first-quarter financial report showed that the company reduced its Bitcoin position by 10%, which resulted in a slight increase in profit for the quarter, an increase of $101 million. Tesla Chief CFO Zachary Kirkhorn said on a conference call after the first quarter report that he would continue to invest in Bitcoin.
