header banner
Default

Elon Musk owns Twitter, Which Could Cause 3 Cryptocurrencies to Soar | The Motley Fool


Elon Musk now owns Twitter. As with many of his other companies, Musk hopes that he can revitalize a product that offers value in people's daily lives. He sees Twitter becoming the modern day "common digital town square" where people can debate opposing viewpoints without falling into an echo chamber.

As this vision is fulfilled, it would be foolish to expect the Twitter of the future to look the same as the Twitter of today. Changes are coming. Musk already dismissed four of the company's top executives to usher in the new era. But what else could be in store for Twitter? How about blockchain compatibility and the addition of cryptocurrencies?

Well, looking at the long list of investors that helped Musk gather enough funds to close on the $44 billion purchase, it seems like that might be inevitable. Binance, the world's largest crypto exchange, confirmed that the company contributed $500 million in support of Musk's new purchase.

Chief Executive Officer Changpeng Zhao commented: "We're excited to be able to help Elon realize a new vision for Twitter. We aim to play a role in bringing social media and Web3 together in order to broaden the use and adoption of crypto and blockchain technology."

This doesn't come as a big surprise, though. Musk has long been a vocal advocate for crypto. He has said "paper money is going away" and believes that cryptocurrencies like Bitcoin (BTC -1.33%) are "ingenious." Musk is on record saying that he owns popular cryptocurrencies such as Bitcoin, Ethereum (ETH -1.94%), and Dogecoin (DOGE -1.89%).

Twitter's top crypto candidates 

VIDEO: Best Crypto to Buy with $5000?
The Motley Fool

But what would a crypto-Twitter integration look like? And what cryptos are positioned to benefit the most?

First off, let's take a look at what crypto functionality Twitter already possesses. Users who enable the proper settings are currently able to accept and send payments to others in Bitcoin or Ethereum. In addition, users can set non-fungible tokens (NFTs) as their profile picture. 

The existing Bitcoin and Ethereum compatibility make these two the most obvious candidates to benefit from Musk's takeover. Both have strong and diverse communities that have made Twitter their preferred social media platform for discussion of recent events, new upgrades, and all things related to price speculation. Furthermore, as the two most valuable and widely used cryptos today, it would seem plausible that they would prioritize additional functionality more so than other cryptocurrencies. 

Of course there's one other cryptocurrency out there that is positioned to benefit as well: Dogecoin. Over the last few years, Musk repeatedly promoted the popular meme coin on Twitter, causing it to rise by as much as 8,000% at its peak. He even went as far to say that "the most entertaining outcome would be Dogecoin becoming the global new earth currency." His recent acquisition might make that dream a reality.

Twitter's possible future

VIDEO: HUGE Cryptocurrency WIN in Texas!
The Motley Fool

New functionality could come in various forms. Imagine if your Twitter profile syncs with your digital wallet. With this synchronization, users could subscribe and support their favorite journalists or artists by simply signing in to their Twitter account. 

In addition, Musk has hinted at combating Twitter's notorious bot problem with the help of cryptocurrencies. Back in April 2022, fellow tech billionaire Mark Cuban tweeted out an idea to defeat bots and spam by introducing a form of staking with Dogecoin. It caught Musk's attention and he called the potential solution "not a bad idea."

In its press release related to backing Musk's purchase, Binance also announced that it formed a team researching ways to leverage blockchain technology to mitigate the "proliferation of bot accounts." 

Musk has also expressed interest in diversifying Twitter's revenue streams. Rather than relying on advertisers, Musk suggested the possibility of adding a monthly subscription to Twitter -- a fee that could easily be paid for in some type of cryptocurrency. 

He claimed that charging users $2 a month could generate enough income to lessen the grip that advertisers have over the platform. There are also plans in the works for verified accounts to pay $8 a month to maintain their coveted status.

An opportunity at hand

VIDEO: Reddit Analysis: Top 10 Coins For Each Year
Graham Stephan

Musk's goals for Twitter are lofty. They won't happen overnight but will likely unfold over the course of the coming years. Musk's past success at revolutionizing industries and his embrace of new technologies makes the possibility of some sort of crypto-Twitter integration quite likely. 

The best part is you can invest in this future now. For those looking for the less-risky option, an investment in Bitcoin or Ethereum makes the most sense. If you're open to more risk and are convinced that Musk will do his best to make Dogecoin the reserve currency of the world, then an investment in the meme coin at today's prices seems like a no-brainer. 

RJ Fulton has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

Sources


Article information

Author: Matthew Evans

Last Updated: 1704280802

Views: 826

Rating: 4.5 / 5 (75 voted)

Reviews: 80% of readers found this page helpful

Author information

Name: Matthew Evans

Birthday: 1934-05-21

Address: 8196 Schmidt Lake, Sheilaburgh, MA 99112

Phone: +4052527743441684

Job: Air Marshal

Hobby: Calligraphy, Quilting, Survival Skills, Motorcycling, Coffee Roasting, Raspberry Pi, Camping

Introduction: My name is Matthew Evans, I am a bold, artistic, vivid, rich, striking, treasured, forthright person who loves writing and wants to share my knowledge and understanding with you.