One of the latest participants in cryptocurrency discussion is Elon Musk, co-founder of SpaceX, Tesla, and CEO of electric car giant, who has been unusually blunt about his opinions on Bitcoin.
On Twitter, Musk said that he is “not even sure why anyone would want or need a cryptocurrency” and added that it is “basically a fad” that may “come and go.”
This is a bit strange, but I am still uncertain why anyone would want or need a cryptocurrency. I think it is basically a fad that may come and go. — Elon Musk (@elonmusk)
While he was answering a Twitter user who had asked him about his thoughts on the possibility of Bitcoin going to $100,000 and beyond, Musk noted that this has happened before with periods of a cryptocurrency’s rise and fall.
This could go to $100,000 before going back to zero.”
The comments are a reversal for Musk, who has spoken previously about the virtues of Bitcoin. In a CNBC interview in September, Musk said that he was personally bullish on Bitcoin and it is “unstoppable” when it comes to digital currencies and the “greatest technology opportunity since the creation of the internet.”
In response to that sentiment, Musk announced that Tesla had joined the Enterprise Ethereum Alliance, which was designed to bring “open source, enterprise-grade blockchain applications to enterprises, where they can be inspected, understood and utilized without the need for intermediaries.”
Musk’s comments follow a wave of volatility and price drops that have followed the announcement of Bitcoin futures by CBOE and CME.
Bitcoin has lost more than half its value since the beginning of the year, hitting its lowest price in over a month at $9,357 on Thursday. During the currency’s peak in December 2017, Bitcoin reached an all-time high at $19,511.
Musk isn’t the first major public figure to voice their opinions on Bitcoin. Warren Buffett, CEO of Berkshire Hathaway, also expressed skepticism about the virtual currency, although he said he was not betting against it.
“Bitcoin could be a legitimate means of exchange,” Buffett said during Berkshire Hathaway’s annual meeting in May 2017. “It’s not my idea that you should necessarily buy it because it goes high and sell it because it goes low and you’ll make money on the way down."
JPMorgan Chase CEO Jamie Dimon also had his share of views on the cryptocurrency, famously calling Bitcoin “a fraud” during a conference last year.
On the matter of Bitcoin’s possible rise to $100,000, Buffett was asked whether he thought the cryptocurrency would ever reach that figure. “It could go to zero,” he said.
“But you can’t predict that. It could go to a million. It’s sort of like jacks in the box… I don’t think it will be a disaster.”
Indeed, Buffett is a known believer in “buy and hold” investing, while Dimon has said he believes Bitcoin is doomed to fail.
Indeed, cryptocurrencies aren’t without their critics. CME Group Chairman and CEO Terry Duffy had this to say about Bitcoin: “There is a massive speculative bubble in this thing.”
