Nowadays we all are hearing a lot about “Cryptocurrency”, a new type of currency which decentralized i.e. not controlled by any specific country or any specific authority. And the major reason why it is talk of the town is because of a renowned billionaire, who is on the top of his game, owner of two of the world’s biggest companies, Mr. Elon Musk.
He was a lot in the talks recently and I was intrigued that why people are so fond of him and not just talking about the reason he was in the news so I thought to read about him. I got to know a lot of amazing stuff about him like he made a video game named “Blaster” at the age of 12 and sold it, he has citizenship of three different countries, he believes that for the survival of humanity we have to become multi-planetary species and the most astonishing thing (I know the previous fact is not a very common thought but)I found was that he had made a company based on artificial intelligence and deep learning named Neuralink which is aimed to implant wireless brain-computer interfaces in the most complex human organ i.e. brain to help cure neurological conditions like Alzheimer’s, dementia, and spinal cord injuries and ultimately fuse humankind with artificial intelligence. All his companies are dedicated to the welfare and betterment of mankind and not just a money-making machine. He has influenced the lives of many people and people of our age “the youth” aspire to be like him or at least be able to make even a tiny impact in this world.
I know you must be confused that I started with cryptocurrency but suddenly started narrating the life story of Mr. Musk, it is because he is the superhero of our story and a context is required for people who are living under the rock and don’t know about our self-acclaimed “alien” (I know he might be just joking about it) Mr. Elon Musk. But wait I must also give a piece of teeny-tiny information about cryptocurrency that what it is and from where it originated and all.
So a cryptocurrency is “a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership” quoting Wikipedia. It is not a physical currency and as previously mentioned not controlled by a single authority or a country. It is a new attraction for investors with a high risk-taking appetite and many technical billionaires like Mr. Musk.
Let’s come to the main point, on January 29th, 2021 Elon Musk changed his Twitter bio to #bitcoin, and roughly within one hour price of Bitcoin (a cryptocurrency) skyrocketed from $32,000 to nearly $38,000 (spike of about 20%). Previously trading for Bitcoin in the hours was averaging below 5,000 trades per hour. In the 60 minutes following the bio change, trading jumped to more than 20,000 trades before coming back down closer to its normal trading range.
Then in an earlier tweet, he tweeted that “Dogecoin is the people’s crypto,” and shared an instructional video about the dog-themed digital currency. He even posted a picture of himself holding a Shiba Inu dog, which is the main theme of a cryptocurrency named dogecoin. Roughly four hours after the tweet, the price of Dogecoin nearly quadrupled before losing almost 50% of the new high in the subsequent two hours. Musk’s Dogecoin tweet has helped produce a short-term burst of trading about five hours after the tweet. Even the analysts are believing that dogecoin is on bull run and could hit $1 by the end of 2021. Elon Musk is frequently nudging people to invest in cryptocurrencies like Bitcoin and Dogecoin and had even tweeted that “Bitcoin is inevitable”.
December 20, 2020 tweet by Mr.Musk and changing of his bio had one of the biggest impacts.
All these tweets by Mr. Musk had a great impact on people as well as the stock market and that’s why this effect of his is called the Musk Effect. This Musk Effect shows the power these people have on social media platforms like Twitter through which they can influence a large number of people through a single tweet or post and can change the market in just a few minutes or even seconds and how powerful they are and what impact they can have on the world.