Washington goes DOGE as Elon Musk pushes for a leaner government

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As a seasoned observer of financial markets, I find myself both fascinated and slightly amused by the recent developments surrounding Dogecoin and the Department of Government Efficiency.

How might Elon Musk’s Dogecoin-influenced style impact Washington if he heads the DOGE Department alongside Vivek Ramaswamy, one could ask? Or, in simpler terms, what potential changes or influences might Elon Musk, with his affinity for Dogecoin, bring to Washington as he takes charge of the DOGE Department along with Vivek Ramaswamy?

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Elon Musk and the rise of “DOGE” in the U.S. politics

Recently, Elon Musk and Dogecoin (DOGE) have found themselves at the center of attention in U.S. politics, an unexpected turn for these unconventional figures.

On November 12th, President-elect Donald Trump declared the establishment of the Department of Operational Simplification, a novel project designed to improve and make more efficient the functioning of the federal government.

— Elon Musk (@elonmusk) November 13, 2024

The visionary CEO of Tesla and SpaceX, Elon Musk, together with biotech entrepreneur and notable Republican, Vivek Ramaswamy, will lead the newly created division.

It’s clear that Musk backed Trump’s campaign extensively, whereas Ramaswamy garnered notice during the 2024 Republican primary debates with his daring proposals for drastic cuts in government spending, such as a 75% decrease in the federal workforce size.

Vivek Ramaswamy, who leads the Department of Government Efficiency, along with Elon Musk, has announced a goal to decrease the total count of federal government employees by approximately 75%.

— Leading Report (@LeadingReport) November 13, 2024

In unity, they strive to introduce the business-world values into government operations. Musk expresses his confidence that these endeavors will create a significant impact or ripple effect within the administrative system.

It’s noteworthy that the term “DOGE” is a fun reference to Dogecoin, the cryptocurrency Elon Musk has been advocating for since 2020. Initially designed as a lighthearted digital currency, Dogecoin’s value often increases after Musk makes comments or offers endorsements, creating significant fluctuations.

Inside the mission of DOGE

The recently established Department of Streamlined Governance represents a courageous initiative aimed at tackling an ongoing issue in the U.S.: reducing unnecessary government spending and navigating through complex administrative procedures.

Instead of traditional methods that enlarge the role of government to address these problems, President-elect Trump’s vision for DOGE (Department of Government Efficiency) emphasizes creating a lean and efficient administration that operates similarly to a successful business.

Essentially, what role does DOGE play? Different from conventional federal agencies, DOGE functions as a specialized consultative entity, boasting a compact team and an emphasis on achieving tangible outcomes.

Musk and Ramaswamy’s task involves locating unnecessary expenses within various federal departments, eliminating repetitive tasks, and suggesting the termination of programs that do not offer tangible benefits or value.

Together with the White House and the Office of Management and Budget, Musk and Ramaswamy aim to scrutinize the nation’s $6.5 trillion spending plan, focusing on significant reductions that maintain the delivery of vital services.

Elon Musk proposes that consolidating tasks and combining agencies with similar functions might result in savings of up to a staggering $2 trillion.

Elon Musk proposes a solution for saving approximately $2 trillion annually from the U.S. federal budget: “He believes that your hard-earned taxes are being squandered, but the Department of Optimized Government Economy aims to rectify this issue.

— DogeDesigner (@cb_doge) November 13, 2024

Given Elon Musk’s track record of disrupting various sectors such as automotive and aerospace, it’s expected that Dogecoin (DOGE) might utilize unique and uncommon tools and methods typically not associated with government.

— Elon Musk (@elonmusk) November 13, 2024

Doge’s project is expected to wrap up by the year 2026, providing a span of two years for Musk and Ramaswamy to explore and fine-tune these efficiency techniques.

As a crypto investor, I find it fascinating that the project’s timeline aligns perfectly with the 250th anniversary of America’s independence. This symbolic convergence adds significant weight to the ambition of establishing a “reformed government” at such a historic milestone.

Dogecoin captured the spotlight again

After the unveiling of the Department of Government Efficiency, there’s been an impressive spike in Dogecoin prices, bringing it back into the limelight once more.

By November 13th, the value of Dogecoin was approximately $0.38, representing a 100% surge within only one week. Reaching a multi-year peak of $0.4359 on November 12th, it had experienced a remarkable rise from $0.10 just a month earlier. This impressive increase translates to an astounding 336% ascent over this brief timeframe.

Dogecoin has previously gained significant attention, mostly due to Elon Musk’s impact. Often referred to as the “Dogefather” within cryptocurrency communities, Musk helped bring Dogecoin into the spotlight in 2020 and 2021 through his consistent social media activities.

In May 2021, his social media posts and public remarks significantly contributed to Dogecoin reaching an unprecedented peak of $0.74, representing a staggering 14,900% surge from its initial value of just $0.005 at the beginning of the year.

The charm of Dogecoin comes partially from its lighthearted beginnings, having been developed in 2013 as an amusing spin-off of Bitcoin (BTC). It was designed to satirize the speculative aspect associated with digital currencies.

By 2021, I found myself analyzing Dogecoin as it transformed into a substantial instrument for speculation. This transformation was largely fueled by an engaged community who found Elon Musk’s endorsements entertaining and captivating.

Despite a crypto market slump towards the end of the year, the devoted followers of Dogecoin, affectionately known as the “Dogecoin Army,” stayed steadfast, frequently holding onto the coin with the hopeful sentiment of seeing it reach new heights, or as they say, “to the moon.

Now, with Musk re-entering the spotlight through DOGE, Dogecoin’ value has soared once again. 

Despite no official link between the Department of Government Efficiency and Dogecoin, Elon Musk’s past support for Dogecoin has rekindled curiosity and speculation in some quarters.

After the announcement, his tweet, “A threat to bureaucracy, not democracy,” is generally seen as an acknowledgment of Dogecoin’s defiant character.

Following Donald Trump’s election win, the value of Dogecoin surged by more than 150%. This rise suggests that Elon Musk’s role within government might have an unforeseen impact on the cryptocurrency market.

Crypto’s new surge in the 2024 election cycle

2024’s political campaign season has been particularly significant for the cryptocurrency sector, driven by Donald Trump’s vocal endorsement of digital currencies and his intention to incorporate influential crypto proponents such as Elon Musk within his government.

In a market heavily influenced by emotions and guesswork, this coordination has sparked renewed energy across the entire cryptocurrency sector, causing a surge in popularity for both meme-based coins and established players such as Bitcoin.

As an analyst, I’m observing that as of November 13th, Bitcoin, the leading cryptocurrency, is currently trading at a remarkable $91,000. This figure surpasses the psychological milestone of $90,000, marking a new all-time high for the digital currency. Compared to its starting price of $38,000 this year, it’s seen an impressive surge of more than 140%, indicating robust growth in the first ten months of 2021.

As an analyst, I find myself observing the intriguing evolution of meme coins such as Dogecoin, which carry a high level of risk yet potential for significant returns. Their value seems more tied to public perception and social media trends than conventional financial indicators. However, the present market dynamics and Elon Musk’s recent governmental role are gradually erasing the distinction between these jest currencies and mainstream investments.

In Washington, the impact of DOGE might significantly impact the future direction of digital currencies, possibly reshaping public opinions and influencing the course of the cryptocurrency market.

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2024-11-13 18:27