Elon Musk, the billionaire CEO of Tesla, said on Saturday that the price of Bitcoin and Ethereum appear to be high. All this, at a time when both have reached record highs.
Specifically, Bitcoin, the most popular currency in the world, touched the market capitalization to more than 1 trillion dollars. Surprising some big financiers. Furthermore, Ethereum, the second largest cryptocurrency, also hit record highs.
Bitcoin and Ethereum prices appear to be high
In this regard, Elon Musk, whose recent tweets have helped skyrocket the prices of digital currencies, made the comment on Twitter.
In fact, when responding to a user who claimed that gold is a better asset than Bitcoin and conventional money.
Specifically, Elon Musk responded to Peter Schiff, an American economic commentator. Whoever said precious metal is better than Bitcoin and fiat money.
To which Elon Musk said: “Money is only information that allows us to avoid inconvenience. That data, like all data, is subject to latency and error. The system will evolve towards that which minimizes both.
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
Furthermore, in a subsequent post, Musk stated: “Taking this into account, Bitcoin and Ethereum appear to be high.”
In fact, Peter Schiff replied, ‘It seems tall compared to what? That’s the problem Bitcoin has no real value, no use case or utility. And, there is no historical comparison that links the price of Bitcoin to the price of any other good.
Seems high compared to what? That’s the problem. Bitcoin has no real value, no use case or utility, and there’s no historical comparison that relates the price of #Bitcoin to the price of any other good. You also can’t value it like an investment as it has no earnings or yield.
– Peter Schiff (@PeterSchiff) February 20, 2021
But Changpeng Zhao, CEO of Binance, also replied to both of them: “You said this about Tesla shares, before they skyrocketed.”
By the way, Elon Musk’s comment has sparked a thread on Twitter. Existing variety of opinions.
It should be noted that the increase in Bitcoin was due in part to greater adoption by major investors and corporations.
For example, the Bank of New York Mellon indicated that it would move into space.
Also, in the last days of January 2021, MicroStrategy noted that it had invested a substantial amount. And so, accumulate 71,079 Bitcoins.
Likewise, Elon Musk, a passionate fan of digital currencies, has defended Testa’s recent purchase of $ 1.5 billion in Bitcoins. What has unleashed the interest of institutional investments in the cryptocurrency.
According to Daniel Ives of Wedbush Securities, Tesla made a profit of about $ 1 billion over the past month on that bet.
“To put this in perspective, Tesla is on a trajectory to make more of its investments in Bitcoin than the proceeds from the sale of its EVs in all of 2020.”
I close with this phrase from Warren Buffett: «Don’t keep what’s left after spending. Otherwise, spend what is left after saving.
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