Musk's Cryptocurrency Prophecy: How Dollar Inflation Affects Bitcoin and Dogecoin?

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Elon Musk, CEO of Tesla and SpaceX, recently shared his views on the future of Bitcoin and Dogecoin on X (formerly Twitter), sparking widespread discussion. He pointed out that if dollar inflation is controlled, the price of digital currencies may decline, a view that challenges the conventional belief that inflation drives the appreciation of cryptocurrencies.

Musk explained that the key is not the absolute value of cryptocurrencies in dollars, but the ratio of dollars to cryptocurrencies. If the dollar inflation rate decreases, theoretically, the cost of purchasing cryptocurrencies will reduce. This view aligns with his perspective on government spending and economic efficiency.

He also responded to the prediction of Y Combinator's CEO Garry Tan, who believes that if Musk's proposed 'Department of Government Efficiency' can reduce government spending, the price of Dogecoin may rise. Musk's long-term support for Dogecoin is vividly reflected in this proposal.

In addition, Musk plans to launch the 'X Money' feature, aimed at integrating Bitcoin and other cryptocurrencies into mainstream payment systems. Although this plan may bypass regulatory approval in the United States, it is expected to accelerate the adoption of cryptocurrencies.

Overall, Musk's views on inflation and cryptocurrencies bring a new perspective to the current discussions on digital currencies, emphasizing the ratio between the dollar and cryptocurrencies and the broader economic environment's impact on the crypto market.

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