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Writer's pictureChristopher H. Loo, MD-PhD

The Real Reason Why Elon Musk Bought Twitter


 

Note: my views. Not investment advice.

With the Twitter deal closing and Elon taking over, what will happen to the company and what lies in store for the future of Twitter?


“Twitter is the de facto town square” — Elon Musk.


It is where celebrities, influencers and the masses congregate share ideas, spread information, and even host infamous Twitter “spats”.


It can be a powerful marketing strategy platform to launch brands, small businesses, and companies.


Twitter has 24/7 global scale and reach for a fraction of the cost, with minimal barriers to entry (anybody can start a Twitter account).


With all of these advantages, the platform still has its drawbacks. The platform is often plagued by disinformation, misinformation, bots, and trolls.


Twitter, along with other social media platforms, were at the center of controversy in 2021 when it “de-platformed” POTUS.


The takeover of Twitter can play out in several ways with the most notable below.


Payments — Since co-founding PayPal back in 1998, it has been the intention of Peter Thiel and the “PayPal mafia” to revolutionize the payments industry.


The goal is to make the industry more efficient, cost-effective, easier access, transparent, and fair for all.


At the heart of it lies the legacy banking system with its traditional ACH structure.


Many companies have attempted to revolutionize the financial infrastructure ranging from digital currencies, wallets, and payment rails.


Companies such as Meta attempted to launch Libra coin in order to bring crypto wallets to its over 1 billion users, which was quickly shut down by Congress. Digital currencies such as Bitcoin, Ethereum, Ripple, and others have given rise to a possible brighter future for all as well as rampant speculation.


Musk may be using Twitter to offer payments to its users through the Bitcoin Lightning network, which is an extremely fast and efficient way to send payments without the cumbersome middlemen.


Notables including Jack Dorsey and CZ are invested in Twitter.


Will this be an “iPhone moment” for digital payments, wallets, and Web3?


It will be interesting to see how all of this plays out.


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