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- Elon Musk suggests that Bitcoin simply represents a less dumb model of liquidity than cash
- Elon’s tweet was in response to a Bloomberg TV conversation with Changpeng Zhao
- Tesla’s recent investment stirred a heavy storm in both the corporate space and the cryptocurrency ecosystem
Elon Musk recently stated that Tesla Inc.’s investment worth $1.5 billion in Bitcoin is a very adventurous venture for the company. He responded to the statement of the industry’s fervent acolytes. The latter called out the billionaire’s endorsement of the slowly emerging Dogecoin.
Elon Musk’s responsive tweet in defence of Bitcoin
Elon tweeted that Bitcoin simply represents a less dumb model of liquidity than cash. He added that for an S&P 500 institution, holding such a significant amount of Bitcoin is extremely adventurous. Elon’s tweet was in response to a Bloomberg TV conversation with Changpeng Zhao, the CEO of Binance Holdings Ltd.
Tesla stirred a heavy storm in both the corporate space and the cryptocurrency ecosystem by storm when it declared this month it had invested around $1.5 billion of cash into the topmost crypto asset. That immediately prompted a rise in Bitcoin’s value. It also escalated conversations about the risk and gains of updating corporate balance sheets with cryptocurrencies.
Changpeng commented in the interview that he is amazed that Musk is a supporter of Dogecoin, which has outrun Bitcoin this year. Elon Musk, the creator of Tesla, has highlighted his support for Dogecoin multiple times on Twitter. And Binance, too, recently announced that it is launching Dogecoin futures on its network to accommodate new liquidity demand.
Changpeng’s wonder on Elon’s support for Dogecoin
Changpeng, however, expressed his surprise in the respective interview as to why did Tesla opt to purchase Bitcoin if Elon Musk is so fascinated by Dogecoin. His perception prompted Elon to explain the respective decision of Tesla, which is also gearing up to welcome Bitcoin as a payment method.
Elon Musk henceforth tweeted that fiat currency receives negative real interest; only a fool is likely not to look around. According to him then, Bitcoin is almost an equivalent for fiat money. However, the keyword here, said Elon, is almost.
The buoyancy over institutional interest, along with other factors, is the reason why Bitcoin surged in its value by more than 400% in the last year. Finance is welcoming new users at its quickest pace ever as Bitcoin exceeds $50,000.
Recently, Binance’s autonomous token BNB also outdid Bitcoin. However, Changpeng observed that this performance brings a higher risk than the most prominent cryptocurrency as well while putting their volatility levels in comparison. Binance Coin began as a loyalty scheme that wished to promote user trades. However, it now fuels the decentralized technologies on Binance’s blockchain platform.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
