Elon Musk on Tesla Buying Bitcoin: One Would be a Fool to Remain in Fiat Currency

Despite Bitcoin being almost as bs as fiat money, the keyword is “almost,” said Tesla and SpaceX CEO.


Tesla CEO Elon Musk defended the company's $1.5 billion investment in Bitcoin, saying it is better than cash, though slightly at best. But even that is enough to make this shift to a digital currency.

”Bitcoin is almost as bs as fiat money. The key word is “almost,”’ said Musk in a tweet.

“However, when fiat currency has negative real interest, only a fool wouldn’t look elsewhere.”

The founder and CEO of SpaceX further states that Tesla’s action is in no way directly reflective of his opinion. He is an engineer, not an investor, and he only owns the publicly traded stock besides Tesla. Musk said,

“Having some Bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P500 company.”

Musk’s comments came in response to leading spot crypto exchange Binance CEO Changpeng Zhao saying, “I'm surprised that Elon's so gung-ho on Doge coin,” while noting that the billion dollars bet was made on Bitcoin and not Dogecoin DOGE -0.54% Dogecoin / USD DOGEUSD $ 0.22
$0.00-0.54%
Volume 1.22 b Change $0.00 Open $0.22 Circulating 131.41 b Market Cap 29.37 b
12 h Google Searches for Bitcoin Hit Dec 2020 Level, Interest in NFTs Surpass DeFi Significantly and Matched Ethereum Briefly 1 d Lloyds to Auction off Vehicles from Mad Max FURY Road Film, Crypto Accepted 1 d AMC Theaters CEO Is Considering Adding Payment Support for DOGE By Year-End
.

“You clearly like DOGE a lot personally, which is awesome. Really appreciate you pushing awareness of DOGE, BTC, and crypto in generally,” CZ then responded to Musk’s clarification.

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By purchasing $1.5 billion worth of Bitcoin, Tesla joined the likes of MicroStrategy and Square, and such a major company directly investing in the leading digital currency took the corporate world by storm, propelling them to consider making the same decision.

It also pushed the prices of Bitcoin higher, which hit a new all-time high at nearly $53,000 on Friday.

Besides Bitcoin, the entire cryptocurrency market is enjoying a wild rally surging past $1.6 trillion, a jump of 94% from early 2018 high, as per Coinmarketcap.

This much activity in the market has Binance seeing more than 300,000 new user registrations on a day-to-day basis, Zhao revealed in the interview.

Binance’s native token BNB price BNB 0.05% Binance Coin / USD BNBUSD $ 376.98
$0.190.05%
Volume 1.49 b Change $0.19 Open $376.98 Circulating 168.14 m Market Cap 63.38 b
12 h Wormhole Launches Solana-Ethereum Bridge to Move NFTs Cross-Chain 3 d Even Ethereum Layer 2 Solutions Are Earning Significantly Higher Fee Revenue than Bitcoin 6 d It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero
has exploded in the past few days, becoming the third-largest cryptocurrency by market cap with 584% gains YTD. Given that BNB also powers the decentralized applications on Binance’s own blockchain Binance Smart Chain (BSC), which has DEX like Pancakeswap, recording more volume than even Uniswap, it makes sense that BNB is going berserk.

“There’s a lot more activity now in this industry than three years ago,” said Zhao. “We are just at the beginning.”

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