Bitcoin got another leg-up on Friday after billionaire Elon Musk defended the investment by his electric vehicle company Tesla in the popular cryptocurrency. After Musk's tweet, where he called Bitcoin "simply a less dumb form of liquidity than cash", the digital currency raced to a new high of $53,263.
"Tesla's action is not directly reflective of my opinion. Having some Bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P500 company," Musk tweeted in response to a tweet on sub-zero returns on cash caused by negative-yielding debt.
"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," he further added.
To be clear, I am *not* an investor, I am an engineer. I don’t even own any publicly traded stock besides Tesla.— Elon Musk (@elonmusk) February 19, 2021
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”.
Bitcoin was trading steady just below the earlier record mark of $51,284. After Musk's endorsement, it surged to its new record high of $53,263 at 9:55 am on Friday in New York. The cryprocurrency has risen 10 per cent just this week.
After a dream run last year, rising 313 per cent, Bitcoin was further to new highs after Tesla's annual report disclosed that the company had invested $1.5 billion in the cryptocurrency. The electric vehicle manufacturer also said that it plans to accept Bitcoin for its cars and services. This saw the digital currency jump to $50,000 for the first time.
Musk has been vocal about Bitcoin and Dogecoin - a cheekish entrant to the cryptocurrency market. His memes and jokes have only flared their popularity, even as countries like India remain apprehensive of the decentralised currency.