The Crypto Implications of Musk’s Twitter Stock Purchase

Elon Musk has managed to defy categorization. 

For many years he was a darling of the progressive Left – an almost messianic figure for environmentalism and the role government can play in combating climate change. This was, mainly, because of his development of battery powered vehicles.

His company – Tesla (NASDAQ: TSLA) – gained an almost cult-like following. It became trendy for executives and Hollywood elites to drive them. 
He made the rounds – appearing on TV shows, movies, and talk shows. 

It seemed that during the Obama administration Elon could do no wrong. Conservatives often criticized him for pursuing unrealistic goals and doing so at the expense of the American taxpayer. In fact, Tesla was heavily subsidized by Federal programs meant to reduce our reliance on fossil fuels. 
But something changed. 

Perhaps it was his appearance on the Joe Rogan Experience back in 2018 where he famously smoked a joint on-air. Joe Rogan’s podcast was becoming increasingly intolerable to the progressive “woke” Left due to his occasional airing of right-wing opinions. 

Nascent elements within the political Left appear to have radicalized after the election of Donald Trump. They no longer had any tolerance for the liberals of yesteryear – people like Rogan, Musk, or even Bill Maher. 

It appeared that a cult had been formed and it sought the destruction of free speech in order to achieve its utopian goals.
The fact that an accepted public figure like Musk would appear on a podcast that also hosted guests whose views didn’t align with theirs became grounds to “cancel.” 

This was shortly after “cancel-culture” was born. People’s social media accounts were scoured for any offensive content often going back years. An online volunteer Gestapo sprang up organically, seeking anyone whose blood had been corrupted by an unacceptable opinion or off-color joke.

Elon faced backlash from his investors for his appearance on Joe Rogan. The SEC charged him with securities fraud for a series of “false and misleading” Tweets where he speculated about taking Tesla private. 

Suddenly, it seemed like there was a barrage of negative news articles written about him and Tesla. I think Elon realized how tight his leash was. 
At the same time, we saw social media companies clamping down on free speech. A host of public figures were de-platformed and/or demonetized. Youtube, Twitter, Facebook and the like went on a spree of account deletions. If you carried an unacceptable view on a particular subject, you were gone. 
This trend accelerated after the outbreak of COVID-19. Social media companies immediately deleted accounts of people who questioned any of the official narrative surrounding the pandemic and our government’s response to it. 
Elon thrust himself back in the spotlight by questioning the accuracy of PCR tests, eventually going so far as posting this meme:

Meme questioning accuracy of PCR Tests

He supported the Canadian truckers’ protest and criticized our corporatist “propaganda” news media.


meme criticizing propaganda news media

Being the richest man in the world and personal friends with Twitter co-founder Jack Dorsey gave him the clout to get away with all of this.
Aware of the disturbing trend among Silicon Valley tech giants in suppressing freedom of expression, he recently conducted a Twitter poll asking if people believed that Twitter rigorously adhered to the principle of free speech.

Elon Musks Twitter Poll on Free Speech

With over two million votes received, over 70% said “No.”  
Shortly after this survey, Elon purchased a 9.2% stake in Twitter (NYSE: TWTR). This made him the largest stakeholder and got him a board seat. Twitter’s stock surged by 27% on Monday after the news broke, and Dogecoin rose by over 11%.
Investors are clearly excited about the changes that Musk will bring to the platform. 

But how does crypto fit in with this?
Musk is a big advocate for cryptocurrency. He made his first fortune developing and then selling online payments system Paypal (NASDAQ: PYPL)so he knows a thing or two about digital financial transactions and currency. 
He sparked a huge rise in Bitcoin’s price last year after announcing that Tesla would accept the digital currency for its vehicles. 

He has long supported the popular “memecoin” Dogecoin, and currently accepts it for Tesla merchandise and as payment at select Tesla charging stations. I think he has a lot of plans for crypto in the future.
Twitter has already heavily invested in various cryptocurrency trends. And co-founder Jack Dorsey has stepped aside to dedicate himself solely to blockchain technology moving forward. In fact, before stepping down from the board of directors at Twitter, he posted articles and books from Austrian economist Murray Rothbard and even warned that hyperinflation was inevitable.

Elon Musk warns that hyperinflation is inevitable

Twitter has already launched a partnership with NFT marketplace OpenSea to integrate NFTs into profile pictures. By upgrading to a premium subscription service called Twitter Blue, users can link their NFTs to their accounts via a hexagonal profile picture to flaunt their collection.
Back in September of 2021, Twitter introduced a “tipping” feature that allows users to easily send Bitcoin to content creators using the Lightning Network. With Elon at the helm, I foresee a Dogecoin tip jar being integrated into Twitter in the not-too-distant future as well. 
I think that Twitter will be moving into the crypto space in a big way. They’re already exploring ways to decentralize aspects of the platform as well as incorporate digital identity and ownership. Tipping and NFT verification is just the beginning.
I believe that Elon Musk is on the right side of history with his free speech advocacy. He and Jack Dorsey also both understand the dire financial conditions facing the world and are trying to develop the technology that will allow us all to survive the future. 
That’s why I’m invested in cryptocurrency and trying to educate others on its importance.

Chris Curl

Chris Curl
Editor, Daily Profit Cycle