Tesla’s investment in Bitcoin [BTC] helped drive the digital asset to a new all-time high on the price charts. However, according to Tesla CEO Elon Musk, the $1.5 billion invested in BTC was “adventurous enough.”
Musk’s comment was a reaction to CZ after the CEO of Binance, Changpeng Zhao, told Bloomberg,
“I’m surprised that Elon’s so gung-ho on Dogecoin.”
Musk has been a cheerleader for Dogecoin [DOGE] for a long time now, with tech entrepreneur tweets frequently leading to exponential price hikes on DOGE maps. Alas, the CEO of one of the biggest crypto-exchanges in the world does not fully appreciate Musk’s support for DOGE.
“This is the decentralized, free world. Anybody can like anything. He can like Dogecoin for any of the reasons he likes. I strongly believe that he is not really associated with Dogecoin in any way. Dogecoin is one of those coins that started as a joke but is gaining a lot of popularity over time just for various reasons that nobody will expect it. I think, Elon really likes it. But the fact though, is that Tesla bought Bitcoin not Dogecoin.”
In the past, Tesla’s CEO argued that it would be ironic if DOGE, designed to make cryptocurrencies enjoyable, were to emerge as the crypt of the future. However, though it’s not clear if Musk has invested in DOGE, Tesla has actually invested in Bitcoin.
However, when addressing the question of whether Musk would count himself as a proponent of Bitcoin now, the Tesla exec commented,
“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.”
In fact, Musk went on to call Bitcoin “almost as fiat money,” adding that because fiat currency has a negative real interest, “only a fool would look elsewhere.”
The Bitcoin market has risen exponentially over the last year. It began about $29k in 2021 and was traded at over $50k at the time of publishing. Looking at the massive growth reported by BTC and the weakening of the US dollar, many investors have turned to Bitcoin. Su Zhu, CEO of Three Arrows Capital, was one to agree with Musk’s position on Bitcoin.
“Incredibly bullish statement about #Bitcoin $BTC from Elon Musk, which I agree 100% with.
Buying $BTC with fiat is not even investing; it’s literally preferring wealth.”
While Musk tends to be a “engineer” and “not an investor,” the fact is that Tesla’s acquisition of BTC has had a positive impact on BTC’s valuation.
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