Tesla’s investment in Bitcoin [BTC] has helped push the digital asset to a new all-time high on the price charts. However, according to Tesla’s CEO Elon Musk, the $1.5 billion invested in BTC was “adventurous enough” for it.
Musk’s statement was a response 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 the tech entrepreneur’s tweets often contributing to exponential price hikes on DOGE’s charts. Alas, the CEO of one of the world’s largest crypto-exchanges does not quite understand Musk’s advocacy 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, the Tesla CEO has claimed that it would be ironic if DOGE, which was created to make fun of cryptocurrencies, emerges to become the crypto of the future. However, while it isn’t clear if Musk has invested in DOGE, Tesla has indeed 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 bs as fiat money,” adding that since fiat currency has a negative real interest, “only a fool wouldn’t look elsewhere.”
Bitcoin’s market has grown tremendously over the last year. It kicked off 2021 at around $29k and at the time of writing, was being traded at over $50k. Looking at the massive growth noted by BTC and the weakening of the U.S dollar, many investors have pivoted to Bitcoin. Su Zhu, the CEO of Three Arrows Capital, was one to agree with Musk’s stance on Bitcoin, stating
“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.”
Even though Musk prefers to be an “engineer” and “not an investor,” the reality is Tesla’s purchase of BTC has reflected positively on BTC’s value.