Elon Musk, on Tuesday, predicted a potential drop in prices of cryptocurrencies like Bitcoin (CRYPTO: BTC) and Dogecoin (CRYPTO: DOGE) if dollar inflation is addressed.
What Happened: The Tesla and Space X CEO expressed his views on how cryptocurrencies would benefit if inflation and government overspending were curbed
“If dollar inflation is solved, the price in dollars to buy cryptocurrency will actually drop, other things being equal,” Musk wrote in an X post. “What matters is the ratio of dollars to cryptocurrency.”
The remark was in response to a post by Garry Tan, CEO of Y Combinator, who predicted Dogecoin’s price would go up if Musk’s upcoming Department of Government Efficiency, or DOGE, achieves its goal of reducing government spending.
See Also: Ethereum Co-Founder Vitalik Buterin Offloads Nearly A Million In Memecoins To Benefit Charities — Dogecoin’s Sister Coin NEIRO Plunges 3% After Sale
Why It Matters: Musk’s comments come in the wake of reports that the tech titan was planning to introduce a new Bitcoin and cryptocurrency feature called “X Money” on X.
According to a leak reported by influencer Alex Finn and MacRumors contributing researcher Aaron Perris, “X Money” might launch without needing approval from all 50 states.
Musk has been a passionate supporter of DOGE meme coin, and the acronym for his upcoming government department is based on the dog-themed cryptocurrency.
Price Action: At the time of writing, Bitcoin was exchanging hands at $96,967.23, down 4.81% in the past 24 hours, according to data from Benzinga Pro. DOGE was priced at $0.3515, crashing 9.41%.
Image via Flickr
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