„Almost as bad as fiat currencies“ – Musk praises Bitcoin, but not really
Due to negative interest rates, the Tesla boss thinks it would be „stupid“ not to look around for alternatives like Bitcoin.
On 19 February, Elon Musk responded to an interview by Binance CEO Changpeng Zhao, who told Bloomberg he was surprised that the Tesla boss was so effusive in his promotion of Dogecoin (DOGE).
In response, Musk countered that „it would be stupid“ not to Financial Peak consider alternatives in the face of negative interest rates on assets in the form of fiat currencies.
Zhao had earlier speculated in the interview that Tesla’s recent massive Bitcoin investment, valued at US$1.5 billion, is probably evidence that Musk is in fact convinced about Bitcoin (BTC).
Investment in the market-leading cryptocurrency
The Tesla CEO then clarified that Tesla’s actions do not necessarily reflect his personal opinion. He adds to this denial by arguing that „Bitcoin is merely a less stupid form of money than cash“. Accordingly, an investment in the market-leading cryptocurrency by a company listed in the important S&P 500 stock index would be „adventurous enough“.
Commenting on Musk’s objection, Samson Mow, CEO of Blockstream, said: „You’re just sad you didn’t get in [on Bitcoin] sooner.“
In arguing that it would be foolish not to consider an „alternative to fiat currencies“, the carmaker did make an apparent plea for Bitcoin, however he put this into perspective in the very next sentence:
„If negative interest is charged on assets in the form of fiat currencies, then it would be stupid not to look elsewhere. Bitcoin is almost as bad as fiat currencies. The emphasis is on ‚almost‘.“
Elon Musk’s Twitter account is, for many observers, the catalyst for Dogecoin’s resurgence after it was first „pumped up“ and then „dumped“ (pump-and-dump) by Reddit forum investors in January. The „richest person in the world“ then later referred to the DOGE on Twitter as „the people’s cryptocurrency“, reigniting the popularity of the „dog“.
On 15 February, however, Musk warned that much of the DOGE’s available circulating supply would be in the hands of a few, so he offered to buy these big investors‘ assets from them to make the „joke cryptocurrency“ truly decentralised again.