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Elon Musk has superhuman abilities as a businessman.
He moves markets with a single tweet.
It’s also no secret that he has a dysfunctional relationship with the Crypto community.
One day he’s buying Bitcoin, and the next, he’s selling because of the impacts of mining on the environment. Then somewhere out of the left field, he says Dogecoin is his favourite Cryptocurrency.
You might think this is all a nothing-burger and a throwaway comment, but when Musk tweets it out to his 130 million Twitter followers, the price of Dogecoin catapults to the moon.
DOGE Founders Jackson Palmer and software engineer Billy Markus created it as a “joke” in 2013 to poke fun at the wild speculation in Bitcoin at the time. They’re on record saying they wanted to make it “as ridiculous as possible”.
What started as a joke became a popular light-hearted internet meme of a Japanese Shiba Inu dog that would say nonsensical phrases like “much wow” and “such tired.”
The founders went out of their way to make Dogecoin as undesirable as possible. They even created a supply of 100 Billion coins to discourage “hodling” (crypto slang for hang onto) but rather promote people using it as a utility.
The supply cap was removed, DOGE is unlimited, and the attempts to make Dogecoin unsuccessful only encouraged society’s subculture to buy more.
Now, it’s garnered the attention of one of the world’s best entrepreneurs.
Elon Musk consistently supports Dogecoin, saying that because of the dynamic of its supply, it has more potential to be used as a utility token because people tend not to sell assets (Bitcoin & Ethereum) they think will increase in value.
Elon Musk — Source
“Well, I’m not the expert on Crypto, but there probably is a future for Bitcoin, Ethereum and Doge.
I can’t speak to the others.
If you’ve got one of those 3 in a cold wallet, not on an exchange, my guess is it works out well. Maybe some of the other Crypto too, but I don’t know about those”
Fate Loves Irony, and the Law of Parsimony Will Tell Which Crypto Will Win.
The Law of Parsimony is a problem-solving philosophy recommends searching for explanations constructed with the smallest possible elements.
It’s also known as Occams Razor, which says you should go for the most straightforward answer in situations with competing explanations since it’s most likely to be the correct one.
It’s how Musk is saying you should view Cryptocurrencies. Or at least how he’s looking at it.
When we have more than one explanation available, we should choose the one that makes the fewest assumptions because that option is the most likely correct.
The Law of Parsimony is the idea that removing unnecessary information is the fastest way to the truth or the best explanation in trying to understand something.
When you hear hoofs clanking against the tarmac outside, you immediately think horses, not zebra.
Medical examiners use this technique of going for the most uncomplicated diagnosis to explain patient symptoms.
When we make a decision, we often overcomplicate things because a lot is happening inside our brains, and we have less control over decision-making than we believe.
Elon Musk has come up with his version of the Law Of Parsimony and says what may happen is the most ironic and entertaining Cryptocurrency, Dogecoin, may become the most prominent digital currency.
Elon Musk — Source
“The most ironic and entertaining outcome is that Doge, which started as a joke, became the leading Cryptocurrency.
Dogecoin is better as a currency because the total transaction flows you can do with Dogecoin is substantially more than the transaction potential per day of Bitcoin, and the cost per transaction is meagre.”
Musk says that you should probably not invest your life savings, but if you want to speculate, you should because it’s likely that Cryptocurrency will be part of our lives and the earth’s currency in the future.
Elon Musk — Source
“First, people should refrain from investing their life savings in Cryptocurrency. Okay, that’s unwise.
If you want to sort of speculate and maybe have some fun, there’s a good chance that Crypto is the future currency of earth, right?
Then it’s like, well, which one will it be?
It may be multiple, but it should be considered speculation at this point, so don’t go too far on the crypto speculation part.
Dogecoin was invented as a joke, essentially to make fun of Cryptocurrency, and that’s why there’s an argument that fate loves irony.
The most ironic and entertaining outcome will be the most likely outcome, and the currency invented as a joke becomes the real currency.”
Final Thoughts.
Musk is bullish on Bitcoin, Ethereum and Doge, which he owns a considerable amount of.
And he’s right.
We are a strange society of people. We’re buying farts out of jars and paying a fetish subscription for feet pics, which makes total sense.
The problem is he’s not predicting the future because the cats are already out of the bag. Dogecoin is already a significant cryptocurrency, the 11th largest by market cap, and it currently has no use case.
It might be a good utility in the future for internet payments, but people are buying it off the back of his Tweets like he’s pulled up in an ice cream truck.
It shows that culture is slowly becoming tokenised, and we, as people, will buy tokens where we resonate with these communities.
We want to be part of the tribe, have a story to tell and cheer for a team.
Musk’s take on the Law of Parsimony is an interesting one, and he recently quoted it again while launching a Twitter poll to vote on whether Ex-President Donald Trump should be back on Twitter.
Well, the results of the Twitter poll showed he was right. The most ironic and entertaining outcome resulted in Trump being back on Twitter.
This article is for informational purposes only; it should not be considered financial, tax or legal advice. You can consult a financial professional before making any significant financial decisions.
This article is for informational purposes only; it should not be considered financial, tax or legal advice. You can consult a financial professional before making any significant financial decisions.