For several weeks now, Tesla CEO Elon Musk has been repeatedly professing his support for the crypto-legend Bitcoin on his Twitter profile, but also for the fun currency Dogecoin. Nevertheless, Musk's electric vehicle company has so far only announced one investment in Bitcoin. Now Musk himself has spoken about the reasons.
Tesla announces crypto investment - without Dogecoin
At the beginning of February, Tesla CEO Elon Musk declared that he was a "supporter of Bitcoin", hyping the most popular cryptocurrency. Shortly afterwards, his company announced that it would not only offer payment with the cryptocurrency in the future, but had also made a billion-dollar investment in the cyber currency - which significantly boosted its price. In addition to Bitcoin, Musk is currently also fond of commenting on the fun currency Dogecoin, which was originally created as a parody of the crypto-legend. This raises the question of why the e-car pioneer is confident about Bitcoin but not Dogecoin. Now the entrepreneur commented on this via his favourite mouthpiece, Twitter.
Bitcoin already "adventurous enough" for Tesla
Musk's comments were triggered by a tweet from Bloomberg showing a short excerpt from an interview with BINANCE CEO Changpeng Zhao. "I'm surprised Elon is so excited about Dogecoin," Zhao told the news agency. The entrepreneur then commented on Zhao's statement. "Tesla's action does not directly reflect my opinion," Musk clarified.
"Having some bitcoin, which is simply a less stupid form of liquidity than cash, is adventurous enough for an S&P 500 company." So investing in Dogecoin as a company would be even riskier, concludes trading portal Benzinga, after all, the crypto alternative's price was driven not only by Musk's tweets but also by speculation in the online community Reddit.
Musk then explained that he was not an investor, but an engineer. Thus, he does not own any other shares besides Tesla shares, as he admitted in his contribution. "Nonetheless, if fiat currencies have negative real interest rates, only a fool wouldn't look elsewhere," Musk muses.
However, he definitely does not want to praise Bitcoin with this, as it is almost as bad an asset as traditional means of payment. "The key word is 'almost'," the Tesla CEO sums up, describing Bitcoin as the lesser evil.
