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Telsa billionaire Elon Musk, whose tweets about the memes-based cryptocurrency dogecoin helped push it to a valuation of $ 10 billion, warned that the price of bitcoin and ethereum “seems Student”.
The price of bitcoin has risen nearly 500% in the past 12 months, in part due to Musk’s pro-bitcoin and cryptocurrency tweets and the addition of bitcoin by electric car company Tesla to its balance sheet. – in the footsteps of the American software company MicroStrategy
MSTR
Tesla and SpaceX CEO Elon Musk has long been known as a cryptocurrency … [+]
AFP via Getty Images
The price of bitcoin has climbed to $ 57,000 this week, giving it a total value of over $ 1 trillion, while ethereum, the second largest cryptocurrency, broke $ 2,000 per ether token for the first time. , which gives it a total value of $ 226 billion.
Musk made a warning about bitcoin and ethereum prices during a Twitter chat about the nature of money. In response to gold investor and bitcoin skeptic Peter Schiff, Musk mentionned: “Money is just data that allows us to avoid the inconvenience of bartering. This data, like all data, is prone to latency and error. The system will evolve into something that minimizes both. That said, bitcoin and ethereum seem high. “
Earlier this week, Musk sought to distance himself from Tesla’s $ 1.5 billion purchase of Bitcoin, which sent bitcoin’s price higher when it was revealed.
“Tesla’s action does not directly reflect my opinion,” Musk said via Twitter in response to a Bloomberg interview with the CEO of Bitcoin and cryptocurrency exchange Binance.
“Having bitcoin, which is just a less stupid form of liquidity than cash, is quite adventurous for an S&P 500 company … When fiat money 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’s mega rally in 2021 has seen its price nearly double since the start of the year thanks to a combination of institutional adoption from Wall Street, interest from businesses and retail traders who have piled up in the market.
“There are a number of reasons why bitcoin is booming, but what stands out the most is the trend started by MicroStrategy and popularized by Tesla: turning institutional balance sheets into bitcoin to hedge against inflation,” Nicholas Pelecanos, head of trading for the NEM blockchain network, said in the comments sent via email.
The rise in bitcoin prices has accelerated in recent weeks, aided by Elon Musk and Tesla.
Coinbase
Ethereum, meanwhile, has taken advantage of the rise of decentralized finance (DeFi) – using cryptocurrency technology to recreate traditional financial instruments such as interest, known as “yield,” and insurance. Many of the larger DeFi projects are built on Ethereum’s blockchain, pushing the price of Ethereum higher as users flood the network.
“We have reached an inflection point where people are questioning traditional monetary systems and recognizing that there are better and fairer options,” said Jai Bifulco, commercial director of the blockchain-based precious metals exchange. Kinesis, in email comments.
The vast bitcoin and cryptocurrency market, made up of thousands of digital tokens, is now worth $ 1.7 trillion, up from $ 800 billion in early January.
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