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Michael Saylor, the CEO of MicroStrategy, is one of those who believes Tesla’s bet on Bitcoin can have a tremendous ripple effect.
Elon Musk, the billionaire Chief Executive Officer of the electric automaker Tesla Inc (NASDAQ: TSLA), has defended the firm’s latest Bitcoin (BTC) move while declaring he has little influence over it. Earlier this month, the company declared it has purchased as much as $1.5 billion worth of the digital currency, a move that took the crypto space by surprise.
Following this occurrence, Bloomberg interviewed Changpeng Zhao, the CEO of Binance cryptocurrency exchange, who expressed shock at Musk’s love for Dogecoin (DOGE), and the eventual purchase of Bitcoin by his firm.
“I’m surprised that Elon’s so gung-ho on Dogecoin,” says Changpeng Zhao. He added that Binance has had to add Doge Futures in the past days to meet the increased demand from the Dogecoin retail army.
Elon Musk on Bitcoin
The interview which received some publicity on social media prompted Musk to justify Tesla’s move.
“When fiat currency has negative real interest, only a fool wouldn’t look elsewhere,” Musk wrote in his two-part tweet. “Bitcoin is almost as bs as fiat money. The keyword is ‘almost.”
The world’s richest man also absolved himself from insinuations that he has a direct influence over Tesla’s investment decision.
“Tesla’s action is not directly reflective of my opinion,” he said. “Having some Bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P500 company.”
There are many more observers in the crypto space who likely share Changpeng Zhao’s sentiments but perhaps, Musk’s clarifications will give a lot of them a better perspective on his company’s choice.
Tesla’s Bet on Bitcoin May Stir a Ripple Effect
The decision by Tesla has earned Bitcoin a lot of big moves leading to a jump above $52,000, a new all-time high price. As against Elon Musk who clarified that the automaker’s actions are not directly reflective of his opinions, the step can have a significant impact in boosting corporate investors’ voyage into the world of the premier digital currency.
Tesla $TSLA has de-risked the acquisition of #bitcoin by public companies and accelerated the digital transformation of corporate balance sheets. Treasurers are now thinking about how to convert a non-performing asset into the best performing asset. https://t.co/7mO7z6WtQ4
— Michael Saylor (@michael_saylor) February 8, 2021
Exchanges, Hedge Funds, and a host of other crypto infrastructure providers are gearing up for the institutional surge into Bitcoin and altcoin in what is expected to be the biggest year for cryptocurrencies ever.