Bitcoin hit a new all-time high early Friday after Tesla CEO Elon Musk described the cryptocurrency as “less stupid” than cash.
The price of the world’s largest digital coin climbed to a record $ 52,954.49 after Musk fired two tweets defending Tesla’s decision to buy and explain $ 1.5 billion worth of bitcoin why the electric car maker hadn’t bought Dogecoin, its favorite meme. inspired cryptocurrency.
“Tesla’s action doesn’t directly reflect my opinion,” tweeted Musk on Thursday evening. “It is adventurous enough for an S&P500 company to have some Bitcoin that is simply a less stupid form of liquidity than cash.”
The billionaire tech tycoon responded to a Bloomberg interview with Binance CEO Changpeng Zhao, who runs the world’s largest cryptocurrency exchange.
Zhao said he was surprised that Musk was so “gung-ho” about Dogecoin, which exploded in value and popularity this year when he and other celebrities accepted it. But Zhao noted that Tesla decided to invest in Bitcoin instead of a cult cryptocurrency created as a joke.
The price of the world’s largest digital coin climbed to a record $ 52,954.49.AP
Musk suggested that cryptocurrency had become a smart investment as central banks drove cash interest rates near or below zero.
“If fiat currencies have negative real interest rates, just a fool wouldn’t look elsewhere,” he tweeted, referring to a term for a government-issued currency that is not backed by a physical commodity like gold.
“Bitcoin is almost as strong as fiat money. The key word is ‘almost’, “added Musk, repeating the comments he made in December when he first expressed an interest in converting Tesla’s balance sheet into bitcoin.
Musk’s recent bullish comments on Bitcoin came amid a growing perception that the digital currency offers protection against inflation.
Tesla’s blockbuster Bitcoin investment – which came along with the announcement that the automaker would accept Bitcoin as a means of payment – was one of several recent signs that cryptocurrency is gaining traction in the mainstream business world.
Mastercard has announced it will support certain crypto transactions on its network this year, and BNY Mellon, the country’s oldest bank, recently announced it will offer banking services for cryptocurrencies and other digital assets.