Will Elon Musk's Twitter acquisition mean a new dawn for crypto?
Elon Musk has finally taken over Twitter after a lot of second thoughts. The announcement also raised a lot of questions about the future of cryptocurrency, Twitter being the hubspot for crypto enthusiasts. What does this mean for Bitcoin, Ethereum and Elon’s favourite Dogecoin? Let’s look at how Musk's Twitter purchase could impact digital currencies.
Twitter’s love for crypto
Twitter has always been a propeller of digital assets. Under cofounder and former CEO Jack Dorsey, Twitter already had crypto-positive features such as Bitcoin tips options and a crypto division. Dorsey also founded Bluesky, now an independent decentralized social networking site.
Even after Dorsey stepped down as CEO, Twitter added more crypto-friendly features such as Ether tips, NFT profile pictures and USD stablecoin payments. And now, the rumour is that Twitter is working on a crypto wallet that’s going to pave the path for more cryptos making the rounds across the social network site.
Musk’s crypto legacy
On February 4, 2021, the billionaire CEO of Tesla and SpaceX, caused a stir on Twitter when he announced that he had purchased $1.5 billion worth of Bitcoin. This sent shockwaves through the crypto world, with the price of Bitcoin soaring to new highs and led many to believe that Musk is now a major supporter of cryptocurrency.
However, some have cautioned that we should not read too much into Musk's purchase, as it could simply be a way to hedge against inflation. In any case, Musk's purchase was a sign that the mainstream adoption of cryptocurrency is gathering pace.
Twitter under Musk
Combining Twitter’s crypto supportive moves and Musk being an active crypto bull himself, it is no surprise that crypto holders are enthusiastic about their joining hands. Binance, an important digital-asset company has already teamed up with Musk to explore the potential Twitter holds for crypto.
Since the ‘Dogefather’ took the reigns of Twitter, DOGE has soared over 102%, overtaking Solana and Cardano. Musk even hinted that Twitter could introduce an option to pay in DOGE.
What changes are we expecting
Musk wanted to use blockchain to promote free speech and reduce spam, but later wrote, “blockchain Twitter isn’t possible.” So what is possible?
Lifting life-long bans on some users is the first step towards eradicating a single point of control of users of a platform. Another step is a token-based voting feature allowing users to recommend and vote on new changes and features. Musk also announced his decision to introduce paid blue ticks so that anyone can opt for a verified account which has garnered criticism among the larger audience.
Scammers can scram
Anyone who has explored the Twitter crypto arena is aware that Twitter breeds scammers, especially in the digital assets space. Spam accounts and fake job offers, sale offers, and airdrops are not only common but also extremely distressful experiences that are keeping people away from delving into crypto.
Using blockchains to validate the identities of account holders can change the playing field here. NFTs can also have some use here to authenticate users.
With high-profile individuals and businesses investing increasingly in crypto, it is only a matter of time before it becomes a mainstream asset class. Elon Musk’s abrupt takeover of a significant social networking site has got to expedite the process. But will it actually be the game-changer that some people are expecting? Or will Musk disappoint by forcing his whims over a community calling strongly for decentralization. We have yet to find out.