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Amid Dogecoin Hype, Elon Musk Warns On Investing With 'Caution' In Cryptocurrencies

May 7, 2021 5:55 am
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Amid Dogecoin Hype, Elon Musk Warns On Investing With 'Caution' In Cryptocurrencies

Tesla Inc (NASDAQ:TSLA) CEO Elon Musk urged investors to exercise caution when it comes to investing in cryptocurrencies in a late-night social media post on Friday.

What Happened: The entrepreneur took to Twitter Inc’s (NASDAQ:TWTR) social media platform ahead of a scheduled appearance on “Saturday Night Live” to disseminate his message which contained a video from TMZ dating back to Feb. 7.

In the video, Musk can be heard answering a question as to whether Dogecoin (DOGE) can become the next currency for the world. He said at the time, “I think it should be the will of the people.”

“People should not invest their life savings in cryptocurrency,” said Musk. “It should be considered a speculation at this point and so don’t go too far on the crypto speculation part.”

See Also: How to Buy Dogecoin (DOGE)

 On the Shiba Inu-themed cryptocurrency, he said, “Dogecoin was invented as a joke as essentially to make fun of cryptocurrency and that’s why I think there’s an argument like fate loves irony.”

“What would be the most ironic outcome? That the currency that was invented as a joke in fact becomes the real currency,” said Musk.

Why It Matters: Notably, Musk’s comments in the February video came a day prior to the report that Tesla invested $1.5 billion in Bitcoin. 

See Also: Over 1100% Surge In Bitcoin Revenue Drives Square's Q1 Earnings Beat: What You Need To Know

Musk’s support of DOGE was noted by Galaxy Digital Research in a recent report titled “Dogecoin: The Most Honest Sh*tcoin,” which cited “remarkably strong fundamentals” and the support of powerful forces as factors that work in favor of the meme coin.

Musk’s frequent tweets on DOGE have at times led to the price of the cryptocurrency appreciating, but at times that has failed as well.

His scheduled appearance on SNL set the stage for the latest rally, but there is a chance that profit booking might come in the way of the cryptocurrency "reaching the moon."

Even so, DOGE has rallied 12,103.39% since the year began beating the 92.53% returns of BTC in the same period. 

At press time, DOGE traded nearly 3% higher at $0.60, while BTC was down 1.11% at $56,126.22.

Read Next: Will Elon Musk's SNL Appearance Just Be A 90-Minute 'Infomercial' For Dogecoin?

Photo by JD Lasica via Wikimedia

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