Elon Musk continues to make headlines, not only for his influential role in the cryptocurrency world with Dogecoin, but also as a key figure in the new United States Department of Government Effectiveness (ironically, the acronym is DOGE).
Both efforts sparked discussions about financial stability, innovation and risk.
Why is Dogecoin increasing?
Dogecoin, the meme-inspired cryptocurrency created in 2013 as a satire of Bitcoin, has surged 130% since the US presidential elections, reaching almost $0.39 per unit, as reported by El País.
The value of cryptocurrency has always been closely tied to Musk’s actions and statements, with examples of dramatic price changes in response to his public comments:
- In 2021, Musk joked on Saturday Night Live that Dogecoin was “a scam”, causing its value to drop significantly.
- Later that year, Musk hinted on X that Tesla might accept Dogecoin as payment, causing the price to rise 33%.
According to CoinMarketCapToday, Dogecoin (DOGE) is trading at around $0.4407, with a 24-hour trading volume of around $20.97 billion USD (€20.14 billion). Its current market capitalization stands at approximately US$64.74 billion (€61.34 billion), ranking it as the seventh largest cryptocurrency in terms of market capitalization. Despite its joking origins, Dogecoin has built a strong community base, reflected in its motto “Do only good every day.” However, experts warn of the risks associated with its volatility and over-reliance on Musk’s public image.
In a report from El PaísJorge Soriano, CEO of Criptán, remarked: “If Elon Musk hadn’t talked so much about Dogecoin, I don’t think the currency would be where it is today. » Similarly, Abel Peña of Bit2Me noted that tying Dogecoin’s value to Musk could hinder its adoption as a trusted asset.
DOGE: The acronym for cryptocurrency and government reform
Oddly, DOGE is now also the acronym for Department of Government Efficiency, which Musk leads under re-elected presidency of Donald J. Trump. The department aims to streamline federal inefficiency and significantly reduce spending. In a Bitcoin News According to this report, Musk apparently claims he could save $2 trillion (€1.9 trillion), warning that the United States is heading toward “bankruptcy” without immediate action.
However, JPMorgan Chase has raised doubts about the feasibility of DOGE. In a recent report, the bank explained that while the Department can propose reforms, ultimate control over spending rests with Congress: “The Department can make whatever suggestions it wants, but ultimately it is the typical 60-vote majority in Congress that makes legislative changes. ”, as reported Bitcoin News.
A report of Forbes notes that the Trump administration has touted DOGE as key to cutting red tape and restructuring federal agencies. However, questions remain about how much influence he can exert in practice, especially given the obstacles faced by Congress.
Will Elon Musk’s Dogecoin grow?
Musk’s dual role within Dogecoin and the Department of Government Effectiveness highlights his significant influence across all sectors. However, experts warn that relying too much on a single number for financial and policy initiatives potentially introduces instability and risks. Carlos Salinas, professor of blockchain at IEB Madrid, warned: “Excessive reliance on a single number is a sign of fragility in terms of sustainability and maturity of the project. »
While Musk’s statements on Dogecoin often attract attention, experts like Salinas have warned that the cryptocurrency’s value remains vulnerable to market volatility. Just this morning, Musk posted on X saying, “I still can’t believe @DOGE is real” with two laughing emojis.
For now, Dogecoin investors and US political analysts are closely watching Elon Muskthe movements. Its influence may bring opportunities for growth and reform, but it also carries significant risks, making it a story worth watching for those interested in both the financial and political landscape.