Tesla CEO Elon Musk: Only a „fool“ wouldn’t look at Bitcoin
The Tesla CEO just made the comment on Twitter – weeks after his company bought over $1.5 billion worth of Bitcoin.
Elon Musk says Bitcoin is a better alternative for storing value than fiat money. The Tesla CEO has previously called Bitcoin as much „BS as fiat“ but offered no explanation.
„Having some bitcoin that is simply a less stupid form of Bitcoin Bank liquidity than cash is adventurous enough for an S&P500 company,“ Musk said in the tweet.
He also stresses that his opinion does not reflect that of Tesla as a whole.
The electric carmaker made waves earlier this month after declaring it had bought more than $1.5 billion worth of Bitcoin. Tesla said it was seeking better returns in a low-yield environment and an overall hedge against concerns of hyperinflation around the world – and that Bitcoin offered that.
Musk reiterated that point today, suggesting that it was a sign of trouble for business people, companies and individuals around the world to not look at alternative investments, as opposed to storing value in a fiat currency.
„If fiat currency has negative real interest rates, only a fool would not look elsewhere,“ Musk said.
However, he added:
„Bitcoin is almost as bs as fiat money. The key word is almost.“
This statement means that Bitcoin is not necessarily different from the way fiat money works in the world – i.e. a transfer medium whose value everyone has agreed on. In that sense, Bitcoin is ideologically the same, but features like privacy, security and immutability make it a better form of money for some.
Businesses are waking up to new money
Musk’s comments came against the backdrop of newer and existing companies and individuals making their own comments and insights on how they see bitcoin investing.
On Monday, enterprise software maker MicroStrategy announced it would raise more than $600 million in a convertible note from institutional investors – with all proceeds to be invested in Bitcoin. The company later increased that amount to over $900 million – due to far greater demand.