Not one to shy away from speaking his mind on Twitter, Elon Musk is known to be outspoken on the social media platform.
In response to Schiff’s argument that gold was a safer asset allocation than cryptocurrencies, Tesla CEO Elon Musk disagreed.
In addition, Tesla and SpaceX CEO Elon Musk stated that Bitcoin and Ethereum “seem high”
On Friday night, Bitcoin reached the one trillion dollar market value threshold.
Bitcoin and Ethereum reached record peaks, and Tesla CEO Elon Musk recently reported on social media that the prices of Bitcoin and Ethereum “seem high.”
An email saying you have gold is not the same as having gold. You might as well have crypto.
Money is just data that allows us to avoid the inconvenience of barter.
That data, like all data, is subject to latency & error. The system will evolve to that which minimizes both.
— Elon Musk (@elonmusk) February 20, 2021
The market value of Bitcoin reached $1 trillion last night, rendering it the most popular cryptocurrency in the world. On Feb 8, Tesla disclosed in an SEC filing that it had purchased $1.5 billion worth of Bitcoins, which lifted Bitcoin 16% that day.
In answer to Peter Schiff, a well-known crypto skeptic and “gold bug,” who believed that gold was a stronger asset allocation than bitcoin or fiat currency, Musk retorted about the qualities of crypto compared to gold.
Schiff paraphrased a tweet from Tesla and SpaceX CEO Elon Musk, in which he claimed that bitcoin is a “less dumb” version of cash.
Tesla CEO Elon Musk tweeted in response: “When fiat currency has negative real interest, only a fool wouldn’t look elsewhere,” “Bitcoin is almost as bs as fiat money. The key word is ‘almost.'”
To be clear, I am *not* an investor, I am an engineer. I don’t even own any publicly traded stock besides Tesla.
However, when fiat currency has negative real interest, only a fool wouldn’t look elsewhere.
Bitcoin is almost as bs as fiat money. The key word is “almost”.
— Elon Musk (@elonmusk) February 19, 2021
Musk disagreed with the retired stockbroker who confronted him, stating: “An email saying you have gold is not the same as having gold. You might as well have crypto. Money is just data that allows us to avoid the inconvenience of barter.”
Bitcoin as “Digital Gold”
For decades, investors have debated whether gold’s core place in the global economy is in danger. It was initially meant to help several currencies, but it has been an unreliable form of payment in the global economy.
It’s a testimony to its strength and consumer interest that gold has done well even though it is quite undervalued relative to many other markets.
With Bitcoin on the horizon, this place may be challenged. Since it was made, it has greatly outperformed gold, which began at the price of a penny and gradually hovered over $57,000 as of the writing of this article.
Some say that Bitcoin is a rival to the gold market, as it is simple to trade and relies on the narrative of decentralization that is enticing to millennials.
Bitcoin had a valuation varying from 2% and 7% of the gold market cap at its height in early January. There was a ten-year leap, but it was still very slow.
Many people think that there is enough space for expansion, but others contend that in the long run, gold can retain its place as a store of wealth.