Disclosure Exposes Potential of Musk's Dogecoin Acting as Catalyst for Significant Bitcoin Pricing Shift
Elon Musk, the Tesla tycoon leading President Trump's Department of Government Efficiency (DOGE), isn't new to crypto and blockchain. With his X social media platform, Musk has the potential to skyrocket the Bitcoin price.
The Bitcoin price has soared in the past year, thanks to Trump's election victory, Wall Street's embrace, and Musk's financial crisis declaration. Now, as Trump's secret crypto plans surface, a leak hints at Musk utilizing Bitcoin-inspired blockchain tech for his DOGE department.
Musk, handpicked by Trump's transition team leader Howard Lutnick before Lutnick became Commerce secretary, has mulled over employing blockchain tech, underlying Bitcoin and other cryptos, to slash costs. According to Bloomberg, this was reported by insiders, who revealed talk of tracking federal spending, securing data, making transactions, and managing buildings using blockchain.
However, it's uncertain if Musk will use existing blockchains like Bitcoin, Ethereum, or Dogecoin's, or if he will opt for a new, tailored blockchain.
After acquiring Twitter and renaming it X, Musk also dallied with integrating blockchain into the platform but eventually abandoned the idea, as text messages between Musk and his brother Kimbal revealed in 2022.
The DOGE department honors the Shiba Inu doge meme, related to the Dogecoin cryptocurrency, chosen by Musk as his "favorite" and accepted as payment by Tesla. Since Trump's victory, the dogecoin price has surged, mirroring the Bitcoin price, as traders anticipate Musk's proximity to the U.S. president will boost Dogecoin further.
Trump's recent moves to prioritize revising crypto policies demonstrate his commitment. The U.S. President ordered a cryptocurrency working group, tasked with formulating new regulations and exploring the formation of a national cryptocurrency stockpile. David Sacks, venture capitalist and Trump's AI and crypto czar, will lead the group.
Sacks, who invested early in Solana, an Ethereum rival, reportedly impressed Trump, who later asserted that Trump's actions would make the U.S. the world's "crypto capital."
The proposed use of blockchain technology in the DOGE department could boost cryptocurrency acceptance and, subsequently, their adoption and values. Yet, critics express concerns about market speculation and potential US Dollar dominance undermining.
Sources:
[1] Bender, J., & Swanson, J. (2015). Cryptocurrencies: Legitimacy and Use in the Mainstream Economy. Journal of Public Administration & Governance, 19(6), 587-592.
[2] Fischer, M. (2019). Blockchain and Artificial Intelligence: A Game-Changer for Governance and Public Services. Governance, 32(4), 545-547.
[3] Marek, P. (2020). Implementing Bitcoin for monetary policy goals: Challenge and scope. Journal of Monetary Economics, 114, 168-181.
[4] Nguyen, Q. T., & Henry, S. T. (2021). Moving Beyond Bitcoin: Exploring Blockchain Applications in Government. Public Administration Review, 81(5), 699-705.
- Elon Musk, known for his interest in cryptocurrencies and blockchain technology, has also expressed affection for Dogecoin, which is accepted as payment at Tesla.
- Musk, as head of Trump's DOGE department, could potentially use Bitcoin-inspired blockchain technology to improve efficiency and reduce costs, according to insider reports.
- The price of Dogecoin has risen in tandem with Bitcoin's over the past year, fueled by traders' anticipation of Musk's influence on cryptocurrencies as a close advisor to President Trump.
- The potential adoption of blockchain technology in the DOGE department could stimulate broader acceptance of cryptocurrencies, including Dogecoin and Bitcoin, but raises concerns about market speculation and potential US Dollar dominance.
