Musk warns of Dogecoin risks: Cryptocurrency has prospects, but please invest with caution

On May 7, Beijing time, Tesla CEO Elon Musk retweeted a video titled "Musk says Dogecoin may be the future of cryptocurrency" on Twitter, and captioned the video saying that cryptocurrency is promising, but please invest with caution.

The video shows that Musk was surrounded by fans asking for his autograph. One fan asked whether Dogecoin could be expanded and was not limited in quantity like Bitcoin, so would it take away the value of traditional coins? Musk agreed with this.

Musk said that people should not invest their life savings in cryptocurrencies, which is unwise. "Cryptocurrency is likely to become the mainstream currency on earth in the future, but this is just speculation. There may be many mainstream currencies, and this idea is also a bit speculative. Don't invest too much in cryptocurrencies. I speculate that the best prospect of cryptocurrency will be Dogecoin."

Some fans also asked him how he managed to make the price of Dogecoin soar after posting the tweet. In response, Musk did not give a direct answer, but only said not to take too many risks with cryptocurrencies.

Musk has discussed Dogecoin on Twitter many times, and the price of Dogecoin has risen along with his discussion. On April 1, Musk said that Space X will bring a Dogecoin to the moon, and then Dogecoin rose by more than 14%.

It is worth mentioning that although Musk believes that Dogecoin may be the future of cryptocurrency, Tesla insists on investing in Bitcoin. In February this year, Tesla announced the purchase of $1.5 billion in Bitcoin. On March 24, Musk announced on Twitter that Tesla vehicles can be purchased with Bitcoin. He also said that Bitcoin payments will be available outside the United States later this year. Tesla only uses internal open source software to directly operate Bitcoin nodes. Bitcoin paid to Tesla will be retained as Bitcoin and will not be converted into legal currency.

Tesla's first-quarter financial report showed that the company cut its Bitcoin position by 10%, which led to a slight increase in profits for the quarter, an increase of $101 million. Tesla's Chief CFO Zachary Kirkhorn said in a conference call after the first-quarter report that he would continue to invest in Bitcoin.