Elon Musk has once again come forward to support the cryptocurrencies and other non-fiat assets in his usual eccentric style. He declared that only a fool wouldn’t consider non-fiat assets and keep on ignoring them.
Musk made these comments on Twitter following comments made by Binance CEO Chengpen Zhao (popularly known as CZ) regarding his promotion of Dogecoin cryptocurrency. CZ said that Tesla’s considerable investment into the Bitcoin and cryptocurrency sector was a proof of Musk’s fascination and deep admiration of the cryptocurrency. He also said that Musk’s promotion of Dogecoin was a big question mark. Musk, however, as usual had a rebuttal.
Tesla’s action is not directly reflective of my opinion. Having some Bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P500 company….,When fiat currency has negative real interest, only a fool wouldn’t look elsewhere. Bitcoin is almost as bs as fiat money. The key word is ‘almost.’”
So, at least in public eye, Musk believes that Bitcoin is almost as dumb as fiat currency. But, at the same time, the minute difference is what it makes it a much better asset for companies to hold. If Musk really believed Bitcoin was dumb, he wouldn’t have helped Tesla invest around $1.5 billion into the sector that is for sure. However, Musk has a fascination for Dogecoin and even called it “The people’s crypto” because of its meme origins and decentralization. However, Dogecoin is almost identical to Bitcoin in many ways and it was started as a joke back in 2013 when the founder only changed the font of the programming and started a meme war against other cryptocurrencies.
Musk’s $1.5 billion investment in Bitcoin has already reaped a considerable $700 million in appreciation because of the latest price increase of the cryptocurrency to record levels of around $55k at press time. His fascination with Dogecoin is also known to be online banter because he hasn’t invested in it, at least publicly. Musk chose Bitcoin because it was THE cryptocurrency and he has even criticized the ownership of the Dogecoin market and ridiculed a few powerful investors holding on to large chunks of the coins. It makes sense because a cryptocurrency can’t be a people’s crypto if most of the circulation is owned by a few percent of people at the top.
Image source: NASA Kennedy under CC