In the crypto world, a single tweet from a famous billionaire investor can send a crypto up or down in a matter of seconds. An influential billionaire like Warren Buffett can stir up Fear, Uncertainty, and Doubt (FUD) in the crypto marketplace with a brief interview on CNBC. And billionaires looking to prop up the value of their crypto assets often find ways to introduce new narratives into the mainstream media. All of this can affect the fortunes of your favorite crypto.
So it's worth keeping an eye on what some of the most prominent billionaires are buying right now. As might be expected, Bitcoin (BTC -2.17%) is a favorite choice of billionaires looking to extend their wealth into new asset classes such as crypto. Lately, Ethereum (ETH -2.76%) has been attracting its own share of billionaire supporters. And don't forget about meme coins. Billionaire investors appear to be leading the crowd into get-rich-quick coins such as Dogecoin (DOGE -5.34%), once again proving the adage that you can never have too much money.
Image source: Getty Images.
Bitcoin
Billionaire investor Michael Saylor is arguably the best-known Bitcoin supporter, and he shows no signs of backing down on his bullish Bitcoin stance. On Twitter, he regularly sends out enthusiastic Bitcoin tweets to 2.6 million followers, with each tweet designed to pump up the value of Bitcoin and protect his massive Bitcoin position.At the top of his Twitter page is a tweet that is destined to become an all-time classic: "Bitcoin is a swarm of cyber hornets serving the goddess of wisdom, feeding on the fire of truth, exponentially growing ever smarter, faster and stronger behind a wall of encrypted energy."
Obviously, Saylor is a Bitcoin maximalist, meaning that he views Bitcoin as the end-all and be-all of crypto. So it's perhaps not surprising that the company that he runs, MicroStrategy Inc., has a huge Bitcoin position, or that Saylor recently took on fellow billionaire Elon Musk in a Twitter beef over Bitcoin. At the beginning of August, Saylor stepped down as chief executive officer of the company to become executive chairman, solely so that he could dedicate more of his time to managing his Bitcoin position.
Ethereum
Billionaire investor Mark Cuban, the hugely influential sports team owner perhaps best known for his role on the TV show "Shark Tank," has emerged as Ethereum's version of Michael Saylor. He calls himself an "Ethereum maxi" and regularly bangs the drum for Ethereum. As he sees it, Bitcoin might be a good store of value, but Ethereum is where all the action is. In terms of smart contracts, non-fungible tokens (NFTs) and decentralized applications, Ethereum has emerged as the premier blockchain in the world, according to Cuban.Earlier this year, Cuban revealed a massive position in Ethereum, and he now appears to be doubling down on his Ethereum investment strategy ahead of the Merge, which is a hugely anticipated technological upgrade to the Ethereum blockchain.
Dogecoin and other meme coins
Elon Musk, the world's richest person at the moment, stands out among the best-known billionaire investors for his willingness to embrace the volatility and uncertainty surrounding meme coins such as Dogecoin. In fact, he is known as The Dogefather on social media for his huge role in bringing Dogecoin to the masses.He seems to enjoy the ability to send the value of Dogecoin up or down with a single tweet and regularly sends out missives designed to appeal to the Dogecoin community on Twitter.
At the beginning of August, for example, he tweeted out a photo of him and his son with matching haircuts. That led to Dogecoin fans begging him to send out a photo of his son and his pet dog, a Shiba Inu named Floki.When Musk complied, he almost broke the internet -- in addition to Dogecoin andShiba Inu, people were even pumping an obscure meme coin called Floki Inu, a cryptocurrency named for Elon's dog.What's really interesting -- and perhaps a bit terrifying -- is that fans of Dogecoin and Elon Musk can also buy a crypto called Dogelon Mars. The ticker symbol, naturally, is ELON.
If you're trying to emulate the success of the world's wealthiest investors, Bitcoin and Ethereum should be at the top of your crypto shopping list. Depending on how much risk you are willing to take, you might also consider taking a position in your favorite meme coin. But just remember -- the value of any asset can fall to zero, and that includes crypto assets named for pet dogs.
Dominic Basulto has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.
I'm well-versed in the nuances of the crypto world and the impact of influential figures on the market. This domain's volatility is undeniable, often influenced by the words and actions of prominent billionaires. Their tweets, interviews, or public statements can orchestrate sharp price movements in cryptocurrencies like Bitcoin, Ethereum, and meme coins such as Dogecoin. Here's a breakdown:
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Bitcoin (BTC):
- Billionaire Influence: Michael Saylor, CEO of MicroStrategy, is a vocal Bitcoin supporter and influential figure, regularly advocating for Bitcoin through his Twitter with a massive following. He's a Bitcoin maximalist, firmly believing in its supremacy among cryptos.
- Market Impact: Saylor's tweets are geared to boost Bitcoin's value and safeguard his substantial Bitcoin holdings. His company, MicroStrategy Inc., holds a considerable Bitcoin position, solidifying his commitment to the cryptocurrency.
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Ethereum (ETH):
- Billionaire Influence: Mark Cuban, known for his role on "Shark Tank" and as an NBA team owner, champions Ethereum, referring to himself as an "Ethereum maxi." He emphasizes Ethereum's superiority in smart contracts, NFTs, and decentralized applications.
- Market Impact: Cuban's endorsem*nt and revealed significant Ethereum holdings underscore his bullishness on Ethereum's potential, particularly ahead of anticipated upgrades like the Merge.
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Meme Coins, Specifically Dogecoin (DOGE) and Elon Musk:
- Billionaire Influence: Elon Musk, Tesla's CEO and a prominent figure in the tech industry, is renowned for his impact on Dogecoin's value through social media. His tweets can cause significant fluctuations in Dogecoin's price.
- Market Impact: Musk's support for Dogecoin, dubbed "The Dogefather," has resulted in remarkable price shifts with a single tweet. His posts generate enthusiasm and influence the market sentiment for Dogecoin and related meme coins.
Each billionaire investor holds distinct views on these cryptocurrencies, shaping market perceptions and driving investor sentiment. Their actions and endorsem*nts often lead to rapid price movements, illustrating the interconnectedness between influential figures and crypto valuations. Understanding these dynamics can be crucial for investors navigating the crypto landscape.
