• Wed. Jun 22nd, 2022

In the battle between cryptocurrencies and Fiat, Elon Musk is betting on crypto!

ByHazel R. Lang

May 22, 2022

Cryptocurrency vs Fiat currency

Photo credits: Fintech News Singapore

Cryptocurrency is a digital asset whose value is closely tied to derivatives on its blockchain. The best example of cryptocurrency is Bitcoin. Fiat currencies are the currencies that are legal tender whose value is tied to the government and are also known as government-issued currency. The governance of the two currencies is different from each other. While blockchains, communities determine the value and govern cryptocurrencies and central banks under government supervision take care of the governance of fiat currencies. Cryptocurrency operates in a decentralized system and fiat currency operates in a more efficient centralized order. In both currencies, it is crucial to understand that their values ​​are constantly changing due to various influencing factors in the market.

Elon Musk and his history with cryptocurrency.

Elon Musk, the CEO of Tesla, has been actively involved in the development of the crypto market. Previously, he accepted the use of bitcoins in his Tesla business to carry out the transactions. After a short cryptocurrency boost, he then abolished the use of bitcoins to make payments. Similarly, after last week’s stock market crash, many people believed that Elon Musk could take constructive steps to revive the market and their prediction was not wrong.

See his tweet below.

From the tweet he posted on Saturday, one can safely conclude that the CEO of Tesla prefers cryptocurrency to fiat currency. His tweet also helped bitcoin climb a bit higher to $38,370 after the disastrous fall of approx. $60,000 to under $30,000 amid crypto market crash. He also added that he would not sell dogecoins, which helped the coin even rise by at least 15%.

Musk’s influence in the crypto market.

Elon Musk’s influence in the crypto market has been enormous. In the crypto world, a special term called the “Elon Musk” effect also has great popularity. Elon Musks tweets about crypto, investments in crypto directly impact the market in a positive way. Currency prices go up and hit their highs in no time, thanks to Elon Musk.

Writers report.

It should be noted that cryptocurrencies are mined and there is a common belief that it harms the environment, while fiat currencies are the legal currencies governed by the government. It is true that cryptocurrencies are gaining popularity and have a high chance of revolutionizing the financial sector, the government must consider the risks of using cryptocurrencies over fiat currencies and come up with the course of action necessary to facilitate cryptocurrencies.

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