Elon Musk is one of the smartest men on the face of the earth, a true tech geek and it shows given all the breakthroughs he has made in the short while he shot up the limelight. He has steadily climbed the richest men ladder over the years and it hasnt happened by chance.
Musk seems to be the kind of guy who knows when to take a chance on a project and also when to get off. He may appear shy and timid in most of his live interviews but I am sure with the power of the internet, the social media and the millions of followers he has on his social media accounts, he understands the influence and sway he has over people and he uses it to perfection.
His recent love relationship with the crypto community is a good thing to crypto no doubt. Imagine a man of his status, a man worth what he's worth at the moment actively and consistently talking about BCH, I guarantee you the price of BCH is going to skyrocket and I am sure that would be lovely, at least for those HODLing some BCH. But that being said, why do you think Elon is suddenly promoting the token he is currently promoting?
I remember back in 2017 when I first became aware of the crypto world, what I had been introduced to was BTC. Back then, it was as though crypto was all about BTC and BTC was the only Crypto. I learned to trade Crypto by trading BTC on Luno and Binance but then I was introduced to 'quick money' alts by an acquaintance.
I remember being advised to buy a certain amount of TRX, POE and MANNA and HODL for a while that those coins were going to make me rich. I was a noob, I didn't know I was being led to the slaughterhouse. I bought TRX at an ATH but I didn't know because a very "experienced" trader had told me to just buy. Just buy she said, it will moon soon and you are gonna cash out big. When moon, when Lambo? LOL
Well, it never mooned and Lambo never came, in fact, after I had bought those coins, they dipped so bad that they nearly went back to their ICO prices. I didn't know at the time, but I was just a victim of a PUMP and DUMP, you know those guys (wales) that would collectively buy a coin at the dip, hype it so much and try to get people to jump on. When they do, coin price rises significantly then they (wales) dump their portfolio on those noobs trying to FOMO in...rinse and repeat.
Before I finally got frustrated and sold off my TRX et al, I was always hanging around on Twitter, and one influencer or the other would rave about TRX and how it is the people's coin. Talking about what an awesome project it is and all, even Justin Sun, the developer of TRX would hype it so much and give the noobs so much hope but these guys were just working together to make a profit. Yeah, that's what it is about because Justin reportedly dumped his own portfolio, about 6billion tokens of TRX.
Doesn't he believe in his own project? Why was he hyping it then?
Now, back to Elon Musk, why is he doing what he has been doing lately? I get the hype around BTC and jumping on to the bandwagon of embracing cryptocurrency for a tech geek like him, but what is special about DodgeCoin and why has he been promoting it?
To drive my point home about DogeCoin, I will use an article from Bloomberg and an extract from an interview with the guy who built DogeCoin.
And here is Billy Markus, who built Dogecoin in 2013:
Mr. Markus, who no longer works on dogecoin, couldn’t believe code he wrote in three hours on a Sunday gave rise to a cryptocurrency worth billions of dollars in total market value.
“The idea of dogecoin being worth 8 cents is the same as GameStop being worth $325,” said Mr. Markus, 38 years old. “It doesn’t make sense. It’s super absurd. The coin design was absurd.”
That same article notes: “A vocal group of buyers on Reddit have made it their mantra to push dogecoin to $1.”
Elon Musk might be a geek, but in the end, he is still a businessman and profit is one of the essential things in business. He might have just learnt to play the game most crypto influencers play, buy a coin, hype it, coin moons, then dump it and make outrageous profits in the shortest time possible.
Here is my advice to anyone trying to jump into coins because influencers are talking about those coins. You might be looking to make a profit by jumping in, but you are actually the profit. FOMO is real, FOMO is bad, stay away.
Before buying into any coin, why don't you take a little tour to this particular coin's progress over time, you know, try to check the chart a little and know what you might be getting yourself into. What is the coin about? What is its level of adaptability? How has it progressed over time? Are you buying the top? Are you buying at an ATH? If it were to dip on you now, what are the chances of it getting back to the price you bought in at?
These are some of the critical questions you need to ask yourself, don't just FOMO into a coin because somebody famous tweeted about them. Should you be buying a coin just because Snoop Dogg tweeted about it? I certainly wouldn't.