What Elon Musk's Twitter Purchase Means For DOGEby@rickyrathore
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What Elon Musk's Twitter Purchase Means For DOGE

by Ricky RathoreMay 15th, 2022
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Dogecoin's price jumped as high as $0.1428, marking a 12 percent rise in its price in 24 hours. Elon Musk has been one of the most popular people on Twitter for years, and he finally made the move to purchase the social media platform outrightly. In the past few weeks, the tech space has been buzzing about the latest news - the [acquisition of Twitter] by billionaire Elon Musk. There have been speculations about what the acquisition could possibly mean for the crypto space.

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For the past few weeks, the tech space has been buzzing about the latest news - the acquisition of Twitter by billionaire Elon Musk. The Tesla founder has been one of the most popular people on Twitter for years, and he finally made the move to purchase the social media platform outrightly.

In the wave of Musk’s Twitter acquisition, there have been questions about what this could mean for the platform going forward. In the crypto space, Dogecoin (DOGE) enthusiasts have also been asking what the acquisition could mean for their favorite asset.

Elon Musk’s Takeover Spikes Dogecoin

As many expected, the price of DOGE immediately shot up after Elon musk’s purchase of Twitter was confirmed. In the days since the billionaire made his Twitter purchase, the dog-themed meme coin immediately saw a spike in its price. Dogecoin’s price jumped as high as $0.1428, marking a 12 percent rise in its price in 24 hours.

The jump is understandable. Dogecoin has always thrived off developments coming from its biggest supporters, and there is no supporter quite as big as Musk right now. The billionaire has tweeted his support for DOGE several times, and he was one of the biggest influences behind the coin’s astronomical rise in 2021 that saw its price jump as high as $0.74.

With the news that Musk would buy Twitter being confirmed, it was evident that DOGE’s price would soar. Opportunistic investors saw that as a way of making money, and several of them immediately ran to the asset to make purchases.

However, things have since died down, and the price of DOGE has returned to the $0.12 region it was before Musk’s Twitter deal was confirmed. Regardless, investors are still wondering what this deal could mean for Twitter and DOGE in particular.

It is worth noting that Dogecoin price predictions are still quite positive.  Investors and analysts remain confident that the asset’s value will rise over time, especially when the market flips bullish.

Musk’s Unwavering Crypto Belief

It goes to say that Musk remains optimistic about cryptocurrencies being the payment channel of the future. The billionaire has shown support for crypto on multiple occasions, and data from Bitcoin Treasuries shows that Tesla still holds $1.68 billion in Bitcoin.

Ever since he made his Twitter acquisition, Musk has been talking a big game about his vision for the company and the platform itself. The billionaire isn’t done laying his vision out, but there have been speculations about what it could mean for crypto.

One aspect where Musk is looking to change Twitter is in terms of monetization. The billionaire believes that there are ways for Twitter to monetize tweets, and he recently suggested that the platform could open a payment option that supports Dogecoin.

Such a move wouldn’t necessarily be surprising. Musk himself has been vocal about his belief that Dogecoin could be an even more superior payment option than Bitcoin. Earlier this year, Tesla began accepting Dogecoin as a payment method for merchandise at its official online store. At the same time, Musk has said that the company could begin accepting the meme coin as a payment method for charging vehicles at supercharging stations across the country.

If Musk believes that Dogecoin is a top-tier payment channel, then he could decide to use Twitter as the perfect testing ground for the asset. Depending on how he decided to monetize tweets and open Twitter up for more profitability, we could see the social media platform herald a new age of payments using the dog-themed meme coin.

For now, the question will be whether or not people will want to pay for Twitter. The social media channel has been able to rise among the ranks of other social platforms primarily because it is free - anyone can open a Twitter account and begin using the platform without having to pay a cent. Will people be willing to change that?

Fixing Dogecoin Is Still A Priority

Despite the buzz that Musk’s Twitter acquisition has caused, it is worth noting that nothing is set in stone yet. For one, Musk is now expected to be feeling the pressure of running the social media platform that he has spent the better part of the past year criticizing. If he’s unable to show that Twitter can indeed be better while still maintaining its profitability, then his $44 billion gambles would most likely have been for nothing.

Right now, there’s little to show that the billionaire is prioritizing Dogecoin in his plans. At the same time, there’s also a lot of work to be done with DOGE itself.

Most prominent is the coin’s tokenomics. Dogecoin is still not a deflationary token, meaning that it might not necessarily work like Bitcoin when it comes to operating as an investment that can help holders to hedge against inflation. So, even if it does get adopted as a payment method by Twitter and a bunch of other companies, there’s still a lot to be desired when it comes to functionality.

Recently, we saw a reconstitution of the Dogecoin Foundation that seeks to address some of these issues and get them some more clarity. The reconstitution had a simple goal - to move Dogecoin from being a “meme coin” to becoming an asset with greater functionality and usefulness.

As explained at the time, the Dogecoin Foundation’s new focus is to protect the Dogecoin brand and community while maintaining the functionality of the asset’s blockchain. There have already been talks about building a staking system for Dogecoin as well as bringing more uses to the asset. All of these are sure to improve its appeal to investors and bolster its price going forward.