Is the Elon Musk effect disappearing? Will the visionary turn his back on the crypto market?

Elon Musk has become a real guru in the crypto world in recent years, but not everyone likes it. Within the cryptocurrency community, opinions about one of the richest people in the world are divided. It is worth recalling here that the biggest criticism that cryptocurrencies face is that they are highly speculative assets. However, the fact that he has a powerful influence in this sector cannot be ignored.

Musk took his first step into the cryptocurrency community in April 2019. Then he stated that Dogecoin (DOGE) may be his favorite cryptocurrency. Since then, he has become a huge fan of the popular meme-coin, which he regularly expressed in his tweets. Thanks to his almost 137 million followers on Twitter, he manages to influence the price every time. During the previous bull market, Dogecoin even temporarily became the third largest cryptocurrency by market capitalization. It ranked behind such giants as BTC and ETH. As of 2021, Musk also speaks a bit more about it Bitcoin. It all started in February 2021, when Tesla announced that it had invested $1,5 billion in the original cryptocurrency. A month and a half later, a major electric car maker even started accepting Bitcoin as payment for its cars in the United States. However, when Musk announced in April that he was going to stop accepting BTC payments due to the CO2 emissions from the Bitcoin network, the BTC price plummeted.

Elon Musk may retire from cryptocurrencies

Musk's mentions of cryptocurrencies and related topics have declined over the past few months. With the exception of a mention or two of Dogecoin, Elon Musk kept his head low while Bitcoin maintained a bullish rally, rising above the $30 mark. But this lack of impact is more vivid when Tesla is considered.

The company released its Q2021 earnings report earlier this month, and Tesla has kept its BTC balance intact. Despite giving up assets in 11, Elon Musk has not sold a single BTC as his total holding of around 950 BTC is worth $350 million. No selling is considered a bullish sign, but investors don't seem to care too much at the moment. This shows that the cryptocurrency market is not only separating itself from the market of traditional finance, but also from the influence of influencers, pushing the pressure back towards supply and demand. Regardless, one of the biggest reasons Elon Musk moved away from cryptocurrencies was the emergence of artificial intelligence (AI).

Artificial intelligence is the new love of a visionary from Silicon Valley

The rise of artificial intelligence (AI) and blockchain technology has brought new innovations and ideas that are changing the way we live and work. One of the most exciting developments in this space is Elon Musk's announcement of his latest project, TruthGPT, a rival to the popular ChatGPT language model. This has sparked a lot of interest and speculation in the AI ​​community, and we can expect to see many more similar developments in this space soon.

Elon Musk is known for his ambitious projects and futuristic ideas. His latest venture, TruthGPT, aims to develop a language model that can explore the mysteries of the universe. This is a tool similar to Chat GPT, an AI language model developed by OpenAI that can understand and generate human-like text. The key difference between TruthGPT and ChatGPT is that TruthGPT focuses on exploring the mysteries of the universe while ChatGPT is more focused on natural language processing. It will be interesting to see how this project develops and how it impacts the AI ​​industry.

What will happen if Musk gives up Bitcoin?

There are two sides to the impact of Elon Musk's exit from cryptocurrencies. While on the one hand, the chances of a negative impact will decrease. On the other hand, panic will also work on cryptocurrency assets. The negative impact is Elon Musk's ability to swing the value of digital assets as and when the Twitter owner sees fit. It would surely be over. At the same time, if Musk completely withdraws from cryptocurrencies, he could also sell off Tesla's stake in BTC. This would trigger a sudden and drastic sell that could start another bear market for BTC. Put simply, Elon Musk still holds a lot of power in the cryptocurrency market, having the ability to influence the value of any asset. This uncertainty is also a concern for many investors, as any asset can fall prey to Musk's interest, which can increase or decrease the value of any asset at any time without much effort. One tweet is enough.