With his dogecoin-inspired Doge department of government efficiency, Elon Musk is currently fighting to lower the “terrifying” $36 trillion U.S. debt, which is causing wild speculation about bitcoin adoption.
Fears that U.S. tariffs could have an impact on the global economy have caused the price of bitcoin, which surged following President Donald Trump’s victory in the November U.S. election, to decline again.
Some analysts have warned that the current decline in the price of bitcoin may only be the beginning.
The Tesla billionaire has now stated that he wants to place the U.S. Treasury on bitcoin and blockchain technology, but he has cautioned that individuals who hope to “win” by placing bets on so-called memecoins are being “foolish” because a memecoin crash might jeopardize the bitcoin price increase.
One of the first memecoins, Dogecoin is a lighthearted alternative to Bitcoin that Elon Musk supported. It soared to a market valuation of $80 billion during the Covid-era cryptocurrency boom before plummeting.
Dogecoin, which is presently valued at almost $30 billion, was able to retain more of its gains than its detractors anticipated.
“If you expect to win at meme coins you’re being foolish, you’re not going to win, don’t sink your life savings into a memecoin … don’t bet the farm,” Musk stated.
The introduction of websites like Pump.fun, which make it simple to manufacture memecoins in a matter of seconds, contributed to the most recent memecoin market craze, which started last year.
The introduction of a memecoin with a Donald Trump theme that was approved by the president led to a spike in the value of memecoins such dogwifhat, pepe, bonk, and shiba inu.
Dom Harz, cofounder of the decentralized finance (DeFi) platform Build on Bitcoin (BOB), stated via email, “We’ve been hypnotized by price spikes, memecoin frenzies, and media spectacles, forgetting that crypto was meant to be a new financial system—one built on decentralized protocols that make finance accessible to everyone.”
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According to CoinMarketCap data, the market value of memecoins reached a height of $137 billion in December of last year. Following a steep decline, the market recovered when Trump made a post about his $trump memecoin.
Before plummeting back to less than $14, the $trump memecoin shot to almost $60.
Reference: Elon Musk Issues ‘Foolish’ Crypto Price Warning As Memecoin Crash Threatens Bitcoin
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