Why does Elon Musk like Dogecoin?

Written by Pedro Lopez

May 11, 2022

The crypto community is a place for serious discussions about tech and finance, although it is also known for its memes. Investors have learned to take some humor into market conditions and projects, which eventually led to the creation of meme-based cryptocurrencies. 

The renowned entrepreneur Elon Musk is known for his sense of humor and eccentric tweets, so it was only a matter of time for him to step in the crypto-meme world. In this article, we will answer the “Why does Elon Musk like Dogecoin” question and give context to the hype.

Why does Elon Musk like Dogecoin?

Elon Musk is not the only one attracted to Dogecoin, as many early investors have been leading a hype campaign since 2016, firmly believing it will reach $1 one day.

However, the funny element is not the main reason Musk likes Dogecoin so much. 

The 50-year old billionaire has stated that “Fundamentally, Bitcoin is not a good substitute for transactional currency” since “The transaction volume of Bitcoin is low, and the cost per transaction is high.”

Musk has also made public that he has collaborated with the Dogecoin developers in the past, following the coin’s trajectory over the years.

A lot of Tesla and SpaceX workers own Dogecoin, which is why Elon has always seen Dogecoin as “The crypto of people”.

Dogecoin explained

Dogecoin is an alternative cryptocurrency to Bitcoin, used for P2P transactions, online payments and crypto mining. Unlike other cryptocurrency projects, Dogecoin does not have a business structure or applications, instead it’s just valued as the prime meme in the crypto ecosystem. Dogecoin is meant to make fun of crypto and allow low-cost transactions for all.

How influential is Elon Musk for the crypto market?

As the cryptocurrency market is still young, it can be highly sensitive to good/positive news and big investments. Elon Musk is a very respected member of the technology industry and has a huge influence on its community, to which crypto investors and developers are also entitled.

This has led Dogecoin and even Bitcoin to spike every time he makes an announcement on Twitter, almost becoming an expected trend. In 2021, Dogecoin went from $0.01 to $0.9 thanks to Elon’s tweets, although later he would be criticized for this influence.

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