Elon Musk And Cryptocurrencies Against The Backdrop Of The US Presidential Race

Since acquiring Twitter, and renaming it X, Tesla and SpaceX CEO Elon Musk has embarked on a very right-wing communication campaign (culminating in the two-hour interview with Donald Trump held this summer), clearly letting his political sympathies shine through. Given the subject matter, however, he hardly did so merely to make his positions known. Many think that the billionaire has targeted a political position, in case the former US president wins the election.

A few days ago, Musk posted a cryptic photo on his social network, in which he is sitting behind the word DOGE. The word would have nothing to do with the note memecoin, which the South African billionaire is openly enthusiastic about, but would rather refer to the Department of Government Efficiency (Department Of Government Efficiency); a possible government task force to be set up soon.

What's Hiding Behind Musk's Ambition

It's certainly not easy to read Elon Musk's psychology. His many admirers (and his perhaps even more numerous detractors) are divided between those who believe he is merely a control, and has no real political ambition, as he is already very busy with his other entrepreneurial pursuits, and those who believe he wants to get closer to the Washington control rooms, in order to preside over them, securing more advantageous tax conditions or further business opportunities.

For all we know so far, the artificial intelligence-generated image of him at his desk may just be a boutade, but Musk's desire to set up a sort of watchdog committee to monitor the workings of government is nothing new. In fact, the entrepreneur has already spoken about it on other occasions, emphasising that his main area of interest would be the economic-financial one. To quote the Tesla patron, the commission should:

"conduct a comprehensive review of the finances and performance of the entire federal government, making recommendations for drastic reforms."

The reforms the tycoon is referring to are closely related to cryptocurrencies.

Serve America or Serve your Own Wallet?

The idea of the commission was expressed by Musk on his X profile. From the same social pulpit he wrote:

"I hope to serve America if the opportunity arises. No salary, no title or any recognition is necessary."

Trump, for his part, showed no compunction whatsoever. His reaction to Musk's posts was tongue-in-cheek:

"Elon, since he's not very busy, he can run the task force. If he has the time, he's best suited to do it."

In short, into the cauldron of the campaign for the now upcoming presidential election has gone Musk, who is certainly not afraid to be the centre of attention. All this talk and hinting could be a way to give popularity to the Republican candidate, as Elon Musk is one of the most popular personalities in the world. The assists between the entrepreneur and the candidate ultimately benefit both, so why not keep making noise?

It is legitimate to think that Musk has an interest in further inflating his wallet, and to do so he is willing to place himself on a pedestal like that of politics. On the other hand, however, his appointment could only stir up a hornet's nest of controversy, since it would be very difficult not to think of the latent conflict of interest.

Would the appointment of Elon Musk help the spread of cryptocurrencies?

As far as the cryptocurrency sector is concerned, appointing Elon Musk as head of this commission on government efficiency could mean giving a vigorous boost to the entire industry. Indeed, the entrepreneur is an avowed supporter of Dogecoin and has long authorised the payment of his cars via this currency. Not only that, he has also sold numerous shares in his company SpaceX for payment in crypto.

In short, a presence like his could mean a complete turnaround and open up a very different period from the current one, in which some bigwigs in Washington and Wall Street still view these new financial assets with a frown. Of course, for these predictions to become concrete, first of all a victory for Donald Trump in the upcoming November elections and, secondly, the actual creation of this commission is necessary. The unknowns are still numerous but, in principle, a domino like the one we have had fun imagining is possible.

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