The news of the Elon Musk acquisition of Twitter has caused quite the stir. While there’s still mostly speculation surrounding the platform’s future, the purchase could impact more than Twitter itself. It’ll likely affect cryptocurrency, too.
Elon Musk is outspoken about crypto, especially on Twitter. Bitcoin and Dogecoin prices have risen and fallen sharply in response to the billionaire’s tweets in the past and Musk has embraced crypto in his other businesses. It’s a safe bet to say his Twitter acquisition will have at least some impact on digital currencies.
Here are three possible outcomes for crypto in the wake of the possible Elon Musk Twitter takeover.
Twitter’s paid service – Twitter Blue – and its new “Tip Jar” feature provide the perfect place to bring crypto to the platform. When Musk takes charge, he could let people pay for Twitter Blue or send Tip Jar payments in their cryptocurrency of choice.
Musk has already suggested that users should be able to pay for Twitter Blue in Dogecoin, his favorite crypto. That could become a reality when he steers the ship. These crypto payments could also expand to other currencies like Bitcoin.
Crypto services have been available on mobile apps since 2013 and Twitter already has NFT support. Bringing crypto services to the platform seems like a natural next step.
Another likely crypto-related change would address scams and bot accounts. Musk has called Twitter out for its spam problem in the past, specifically citing Dogecoin-related crypto scams. Given that stance, he would likely crack down on crypto spam accounts on Twitter.
Removing scams and bots would have two major consequences. First, Twitter would be a safer and generally more pleasant place to be, with fewer spam accounts interrupting your feed or taking advantage of curious users. Secondly, and more importantly, crypto could gain some more legitimacy with the public since there would be fewer scams for people to associate it with.
As Elon Musk brings crypto into the public eye on Twitter, it’ll likely gain popularity and value. You can see this shift on a smaller scale in crypto markets’ response to the first announcement of Musk’s Twitter takeover. Dogecoin rose by almost 30% after news broke that Musk agreed to buy the social media company.
If Twitter starts supporting other cryptocurrencies, more could experience similar spikes. Crypto, as a whole, would become more accessible and play a bigger role in everyday life. That, in turn, would drive more people to it, raising prices.
This growth may not look like a dramatic spike. It could take the form of slower but more meaningful long-term growth as more Twitter users embrace crypto.
Twitter’s future remains uncertain, but given Musk’s outspoken support for crypto, something will happen. What that is, specifically, or how dramatic it will be is unclear, but these three potential outcomes seem likely. Twitter had been a popular space for crypto discussions long before Elon Musk agreed to buy it. As he takes the reins, these trends could reach new heights, bringing crypto values with them.
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