News Crypto and cryptocurrencies

Elon Musk now calls for caution on cryptocurrencies

The anticipation is growing for his appearance on Saturday Night Live

"The cryptocurrency they are promising but please invest with caution ”: this is the message posted by Elon Musk on his Twitter profile. A post that can certainly be shared, in light of the great volatility that characterizes digital assets, even higher than what is a rule for normal financial markets.
However, it should be emphasized that if many persist in attitudes that are not exactly marked by prudence, a part of the blame also rests with the founder of Tesla. Which for months now seems to have fun riding the wave, in particular with his posts on Bitcoin e Dogecoin. Which are now considered a growth factor for the two tokens.

Elon Musk Dogecoin - Elon Musk now calls for caution on cryptocurrencies

Not a new statement

The words of the offending tweet are not brand new. Indeed, the South African-born billionaire had already released a similar message during an interview with TMZ a few months ago.
In the meantime, however, there has been a further acceleration of dynamics in place since the beginning. With projects born suddenly which are able to suddenly capitalize more than companies operating in mature markets for decades and others that suddenly sink, leaving investors with the classic lit match in hand.
A trend which is raising many concerns. Among them those of Elon Musk, who in an interview of about two minutes posted on video was quite clear: “Don't take too many risks with cryptocurrencies”.

The Elon Musk factor

That Elon Musk represents a real factor in the cryptographic market is now well established. So much so that a British trader, Andrei Badoiu, just recently launched a bot which responds to a specific input: as soon as Tesla CEO tweets about Bitcoin he orders the purchase of the token. Consequently, exploiting a well-established mental mechanism which is shared by a large number of small investors. The resulting pump and dump also and above all works to the advantage of Dogecoin. The meme coin, in fact, has long been in the good graces of Musk, who does not beg to come out every now and then with posts destined to inflame the quotation. Pushing it to the moon, as it is now customary to indicate the mechanism that is triggered on these occasions. So much so that many are already preparing for a new boom, or the one that could trigger with the the billionaire is expected to attend tonight's Saturday Night Live.

The controversy is around the corner

However, Elon Musk's fairly casual behavior is increasingly the object of strong criticism, coming from many parts. In particular by that traditional financial world which still does not seem to have resigned itself to the competition of monetary innovation.
As the harsh words that arrived a few days from the top of Berkshire Hathaway, the now famous investment fund of Warren Buffett. The Oracle of Omaha, as we know, has never been a sympathizer of digital assets. Despite the attempts to convert it carried out by some leading exponents of the cryptographic space, he has always looked with suspicion at an environment that he clearly does not understand. The problem, however, is not him, but theevident annoyance of a part of the political world for what is considered pure and simple speculation. And it is precisely these sectors that the sector will have to watch carefully over the next few months.

Buying Cryptocurrencies? Exchange Binance Binance

Dario Marchetti

I have a degree in Literature and Philosophy from the Sapienza University of Rome, with a thesis on the eastern border of Italy at the end of the First World War. I have collaborated with several sites on many issues and led the work group that published the official CD-Rom of the SS Lazio "History of a love" and "Photographic History of Magical Rome".

Similar posts

Leave a comment

Your e-mail address won't be published. Required fields are marked *

Back to top button