Following a major sell-off, Bitcoin, dogecoin, and ethereum are having a much better week. The main reason for this jump is the recent announcement from Tesla CEO Elon Musk, Twitter CEO Jack Dorsey, and Amazon that they plan to incorporate crypto into their business soon if they have not already.
The past week, investors had been holding back due to the new Delta variant of the coronavirus. The result of this was Bitcoin falling below $30,000. Just a few days after Bitcoin hit this low, Musk says that Tesla and SpaceX both own bitcoin. Musk has disclosed his information before, along with that his only personal investments outside of Tesla and SpaceX were bitcoin, dogecoin, ethereum. For people who want to invest but don’t know where many decisions based on what they consider to be successful businessmen choose to invest in.
Musk is known for the great power he has over markets. Back in June, Musk halted the use of crypto for Tesla purchases, commenting that it would be resumed once mining is done with clean energy. This tweet caused Bitcoin to jump almost 10%. Today, he has implemented the same tactic by posting a meme about dogecoin saying that ‘Dogecoin is money.” The rise in dogecoin following this comment is to no surprise — at this point, it is expected.
Dorsey did not specifically state that he invests in any of the three forms of cryptocurrency, while he has proven to be a bit of a bitcoin fanatic. He has taken many steps hinting that bitcoin will become a norm across his companies. In an interview, he commented that bitcoin could be a very large part of Twitter’s strategy. In addition, Dorsey’s other company, Square, just recently announced its plans to create a business with a focus on Bitcoin cryptocurrency.
Looking into Amazon’s contribution to this rise, it is more minimal than Musk and Dorsey, but it is still worth noting. In the past, the company had shown little interest in becoming involved with cryptocurrencies and adopting them to be used as payments, while this has recently changed. Amazon has created a new job posting for a digital currency and blockchain expert, hinting at their new interest in crypto.
Cryptocurrency is becoming a large part of financial services and will only become bigger over time. Following the pandemic especially, the world needs alternatives to cash and this has proven to be a very reasonable solution. Over time, it is likely for many more major companies to adopt crypto as a form of payment. Who do you think is next?
Toh, Michelle. “Bitcoin, Dogecoin and Ethereum Are Suddenly Having Another Great Week | CNN BUSINESS.” CNN, Cable News Network, 26 July 2021, www.cnn.com/2021/07/26/investing/bitcoin-price-dogecoin-ethereum-intl-hnk/index.html.