Elon Musk cautions crypto and Dogecoin investors: “Cryptocurrency is promising, but please invest with caution!”

For months, Tesla CEO Elon Musk has been tweeting about cryptocurrencies especially Bitcoin and in recent months, Dogecoin. In an interview with TMZ, Musk said that Dogecoin could be the future of cryptocurrency. He also offered words of caution for crypto investors saying “Don’t take too much risk with cryptos.”

“First of all, I think people should not invest their life savings in cryptocurrency. To be clear, I think that’s unwise. But if you want to sort of speculate and maybe have some fun, there is a good chance that crypto is the future currency of Earth. And then, it’s like, which one is it going to be? Maybe it’ll be multiple. But it should be considered speculation at this point. So don’t go too far on the crypto speculation part,” Musk said while signing autographs.

To further emphasize his point, Musk cautioned crypto investors in his Twitter post saying “Cryptocurrency is promising, but please invest with caution!” while sharing the TMZ video of his impromptu interview.

Cryptocurrency is promising, but please invest with caution! https://t.co/A4kplcP8Vq

— Elon Musk (@elonmusk) May 7, 2021

Meanwhile, Dogecoin started as a joke in December 2013 based on the popular “doge” meme represented by a Shiba Inu dog as its logo, literally taken from the “Doge” meme. It has gone up by 12,000% since January of this year. So if you had bought a $1,000 dogecoin at the beginning of the year,  your return on investment would be worth $121,052 at Wednesday’s high of $0.69.

However, before you jump in and buy dogecoin in hopes of making some quick bucks, it’s important to remember that, unlike Bitcoin and Ether which have some inherent values, the surge in the price of Dogecoin is partly boosted by celebrities like Elon Musk and Mark Cuban. Both have expressed their support for the so-called “People’s coin.”