Why is Elon Musk Supporting Doge

Elon Musk shared a number of cryptocurrency tweets over the weekend, including one praising Dogecoin as “the people’s crypto.”

SpaceX and Tesla CEO made the claim when responding to a tweet about a survey that found that nearly a third of cryptocurrency owners in the US own Dogecoin, an online payment system based on the internet meme originally Created as a joke before its value reached tens of billions of dollars.

“Lots of people I talked to on the production lines at Tesla or building rockets at SpaceX own Doge. They aren’t financial experts or Silicon Valley technologists. That’s why I decided to support Doge—it felt like the people’s crypto,” Musk tweeted on Sunday.

Musk also commented on possible improvements when asked if he had worked with the Doge development team recently.

“Not recently. What matters imo [in my opinion] is lowering fees, decreasing block time & increasing block size. A single layer network with exchanges as de facto layer 2 seems like the simplest solution for a medium of exchange,” Musk said.

Dogecoin co-creator Billy Markus responded to Musk’s Doge improvement tweet.

“Imo dogecoin being fast, scalable, and inexpensive to send around is all it needs to be, it doesn’t need to be yet another blockchain that hosts NFTs or other tokens or whatever the tech to get there is complex, but that utility is simple and needed—beauty in simplicity,” Markus wrote. Musk responded with the 100 emoji.

In another tweet, Musk confirmed that he only owns three cryptocurrencies: Bitcoin, Ether and Dogecoin.

“As I’ve said before, don’t bet the farm on crypto! True value is building products & providing services to your fellow human beings, not money in any form,” he wrote.

On Friday, the billionaire also responded to a tweet from the UberFacts Twitter account which said that he is “predicted to become the world’s first trillionaire, thanks to SpaceX.” Musk replied: “*In Dogecoin.”

This is not the first time Musk has tweeted about Dogecoin, and previously declared it the “people’s crypto” in February.

The value of the token also seems to rise whenever Musk tweets about it.

In July, the value of Doge spiked after Musk tweeted “Release the Doge!”

A similar spike also occurred in August after Musk tweeted: “I’ve been saying this for a while,” in response to a post from CNBC’s account detailing an interview with Dogecoin co-founder Mark Cuban describing it as “the strongest when it comes to using it as a medium of exchange.”

On Monday morning, the value of Dogecoin rose up to 8 percent in the wake of Musk’s latest tweets about the cryptocurrency, according to CoinDesk.

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