In a recent tweet, Elon said Bitcoin prices seem high. The richest man on the planet was replying to Peter Schiff, a crypto skeptic who said Gold is better than Bitcoin and fiat currency.
“Money is just data that allows us to avoid the inconvenience of barter,” Elon said. “That data, like all data, is subject to latency & error.” In a following post, he added, “that said, BTC & ETH do seem high lol.”
Musk earlier called Bitcoin a “less dumb” version of fiat currency. The largest crypto spiked as much as 3.3% to a record high of $57,520 on Saturday before dropping to $57,000 at 1:25 p.m. in New York. It’s surged 55% since the end of Jan and more than quadrupled last year. For several years after its debut more than a decade ago, Bitcoin traded for just a few dollars.
Crypto followers are dueling with skeptics for the dominant narrative around the rise - the former see an asset being embraced for its ability to hedge risks such as inflation, while the latter sense a crazy mania riding atop waves of monetary and fiscal stimulus.
Elon gave impetus to Bitcoin joining the mainstream when Tesla Inc. said it invested $1.5bn and was prepared to begin accepting the cryptocurrency as a form of payment for its E.V’s. According to Dan Ives at Wedbush Securities, Tesla has made a profit of about $1 billion over the past month from that investment. “To put this in perspective, Tesla is on a trajectory to make more from its Bitcoin investments than profits from selling its EV cars in all of 2020,” Ives wrote in a recent article.