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Elon Musk recently purchased 73.5 million shares of Twitter stock which makes him the largest shareholder with 9.2% of company shares. This dwarfs the holdings of the second largest shareholder Co-Founder & former CEO Jack Dorsey who holds approximately 2% of the company stock.
Shortly after it was announced that Elon Musk had joined the Twitter board, Elon Musk then Tweeted: “Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months.”
Late Sunday there was a reversal in his decision to join the board. Left unknown is if there was pushback towards him joining. One possible reason for refusing to join the board could be that this would entail a large concession from Elon Musk. By joining he would only be able to purchase a limited amount of Twitter stock, a number that does not exceed 14.9% for the duration of his board term. It is possible this limitation is what caused Elon Musk to back down.
More importantly, Musk had previously spoken to Jack Dorsey, and to Cathie Wood CEO of Ark Invest during a panel titled “Bitcoin as a Tool for Economic Empowerment” at the popular “The B Word” conference that was streamed live in July 2021.
During this panel Elon Musk made an important suggestion that clearly shared his views on integrating Twitter and cryptocurrency. After Jack Dorsey stated that his current focus for Twitter was a decentralized social media protocol that is called Blue Sky, Elon Musk asked the following question: “What about letting Twitter advertisers pay in crypto?”
“What about letting Twitter advertisers pay in crypto?” – Elon Musk
Elon Musk is usually very specific in his terminology, and the fact that he used the term crypto instead of Bitcoin indicates a desire to offer multiple cryptocurrency options for advertisers who wish to spend money by advertising on the Twitter platform.
The Twitter platform reported receiving 1.56 billion in revenue in the last 3 months of 2021. Twitter accepting cryptocurrency would serve as goodwill to the crypto community, and more importantly it would enable users to offramp crypto by purchasing ads on the Twitter platform. For cryptocurrency companies this would simplify ad buying and in turn could result in a cash windfall for Twitter.
Jack Dorsey responded, “Yeah, I mean I think enabling anyone as you know Elon, like if we had bitcoin or native currency for the internet before Twitter started, like it just creates so many different business models that we wouldn't have to be so dependent on advertising generally, and I do believe that you know that we have them any form of payment that they want to use we should be able to take so absolutely. But, I'm more focused on like how do we create economic incentives in the network itself without having to rely on advertising”.
Jack Dorsey clearly agreed that Bitcoin and cryptocurrency should be added as a payment option, but it was clear that his focus was elsewhere. Perhaps, on designing a token ecosystem within Twitter that focused on the decentralized nature of blockchain technology.
Yet, Elon Musk continued laser focused on what is most impactful to increasing user adoption. Critically, he addresses Twitter: “Yeah, the money has to come off of the crypto so called coins the hashtags have to come off and get translated into real products and services so the more off-ramps there are to real practice products and services even at the institutional level. Although there are many small advertisers on Twitter, it seems like accepting Bitcoin maybe some other cryptos for advertising payments on Twitter would be supportive of Bitcoin.”
Elon Musk manages to dodge all the usual cryptocurrency industry jargon to instead remain hyper focused on what matters most. Instantly, Jack Dorsey agrees: “100% percent”, he continues “and also looking at just general commerce as well”.
Elon Musk then places Jack Dorsey on the spot, and springs this revealing question after some muffled audio. “I was asking Jack if he's going to do it?”.
“I was asking Jack if he's going to do it?” – Elon Musk
Elon clearly lays out his intention, and his expectations.
Should the above materialize, while Bitcoin could potentially enjoy a price swing, it is the Dogecoin community that could end up experiencing the most material benefit by receiving a boost in token price.
Of course the above is only speculation, another option is zero advertising for members of Blue Twitter, with a more advanced Twitter integration. This could include paying for membership fees with Dogecoin, or being able to leave tips for Tweets, Retweets, or likes.
Investors may attempt to time the market before any such announcement, of course there is no guarantee that such an announcement will be made. Nonetheless, the downside of holding Dogecoin at its current price might be tempting to many industry veterans who are comfortable with the volatility of cryptocurrency prices following market moving news.
He is also the Founder of Unite.ai a news website on AI & robotics, the generative AI platform images.ai, & is he is currently working on launching genius.ai a platform that will offer users the ability to configure and deploy autonomous agents by breaking prompts into sub-tasks.