Elon Musk has recently warned that if his "Doge Department" initiative succeeds in tackling inflation, it could significantly impact the value of cryptocurrencies, including Bitcoin and its rival Dogecoin. Musk highlighted that if inflation is addressed effectively, the cost of acquiring cryptocurrencies in U.S. dollars might decrease, leading to a drop in their dollar prices, all else being equal.
Musk made these comments in response to a post by Garry Tan, CEO of the Y Combinator startup incubator, who shared a video of Canadian Conservative Party leader Pierre Poilievre discussing his plans to reduce inflation by curbing government overspending. Musk emphasized that what truly matters is the ratio between dollars and crypto, not just the individual price in dollars. This sentiment aligns with predictions that if Musk's Doge initiative proves successful, Dogecoin's value could rise.
