Elon Musk, ‘DOGE’ Unit, And The Expectations For Dogecoin
Opinion by arsim@thejournalbiz.com
The outcome of the recent elections in the US is already coming to fruition. After Donald Trump’s convincing victory, we have a tangible result on the markets, even before the official shift of power that is due to take place by the end of next month.
One of the main reasons is believed to be that within the upcoming administration, for the first time ever, we will have a special department that will supervise and advise the presidential office itself, and that office will be led by a well-known innovator, Elon Musk.
Amid all the promises we heard thus far, Trump administration’s is adamant, as far as the ‘DOGE’ department is concerned.
Official logo of U.S DOGE Unit (Department of Government Efficiency)
The ‘DOGE’ department will impact several issues, ranging from monitoring to advising the sectors that made headlines during the pre-election campaign.
Among the main priorities are considered to be the regulation of the crypto market (bitcoin in particular), deregulations for innovative businesses, as well as the minimization of numerous expenses in projects considered insignificant for the American taxpayer.
So, in short, the commitments that Elon Musk will have in the ‘DOGE’ department are expected to affect the crypto asset known as Dogecoin.
But first, let’s differentiate the DOGE department and the Dogecoin meme-based crypto.
The former is known as the Department of Government Efficiency, which from January 20th onwards will be simply called ‘DOGE ‘and main reforms will be led by billionaire Elon Musk and entrepreneur Vivek Ramaswamy.
DOGE, among other things, will aim to minimize budgetary expenses and eliminate administrative burdens, while ensuring transparency and demanding accountability at the same time.
While the latter, Dogecoin is a meme-based crypto, which has peripheral similarities to bitcoin but remains unlimited in the market. That makes the Dogecoin almost worthless from an economic standpoint, or of minimal value, (compared to bitcoin), therefore the meme-based coin remains prone to speculation in the market.
Dogecoins, a meme crypto coin future projections
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The fate of Dogecoin and its investors, who mainly are represented by the younger generation, is that Mr. Musk prefers the latter.
This is where we have an unnatural correlation of the ‘Musk’ factor.
His governmental engagement in the DOGE department on the one hand, and the tendency to influence through meme-posting on the X network on the other.
That said, enthusiasm and expectations are rising for the ‘DOGE’ unit, while online speculations are also taking place on Musk’s influence from his tweeting habits, and to what extent will all that influence the value of Dogecoin?
Influencing markets through social networks is not uncommon for the upcoming administration.
Donald Trump is known for his specific posts, often threatening with extra tariffs on China, not sparing the European Union, nor the NATO alliance for that matter.
Not only Mr. Trump, but also Mr. Musk himself has an undeniable influence from social networks, and with that I mean from the former Twitter platform now called X
However, Elon Musk is best known for his tense debate with former Twitter executives, a debate in which, instead of lowering the price, he indirectly raised it. This was due to the attention and controversies with the executives that went on for over a week until the acquisition was completed.
If we are to measure the power of Elon’s tweet, then we must highlight the day when he simply changed his bio at the time in Twitter (regarding bitcoin), and the price of the cryptocurrency skyrocketed within minutes.
Tweet screenshot of Elon’s influence on Bitcoin price
Thus, the logical deduction of the whole dilemma arises. What else can we expect from Elon Musk and his ‘DOGE’ team, and to what extent the Dogecoin can be influenced by the latter?
One thing is certain, Dogecoin will sooner, rather the later surpass the record reached in May of 2021, (peaking the value of $0.93 per unit) and will undoubtedly continue with fluctuations in the market.
After all, President Trump’s administration does not control market prices, but quite on contrary. Trump aims for mass deregulation and elimination of numerous administrative burdens for innovators, while prioritizing the artificial intelligence industry and regulating the crypto market, to the extent that bitcoin will be considered as a federal asset class.
All these reforms are made for one purpose only, and that is improving the American economy, by lowering the trillion national debt first, and as Mr. Trump likes to argue publicly, to do everything possible to ‘Make America Great Again’.
The only question is how will all that play out? and will he succeed in delivering all the promises he made during his campaign.
A big question mark hangs and the expectation bar is set pretty high over the upcoming administration, but all we have to do now is to just wait and observe over the next four years the ‘Trump/Musk’ duo, as their ‘reality show’ wth executive powers starts on January 20th, 2025.
