Telsa billionaire Elon Musk, whose tweets about the dogecoin meme-based cryptocurrency helped her to a $ 10 billion valuation, warned that the price of bitcoin and ethereum “seem high.”
The price of bitcoin has risen by almost 500% in the last 12 months, partly due to pro-bitcoin and cryptocurrency tweets from Musk and his electric car company Tesla, which added bitcoin to its balance sheet – following in the footsteps of US software company MicroStrategy
MSTR
Elon Musk, CEO of Tesla and SpaceX, has long been known as a cryptocurrency … [+]
AFP through Getty Images
The price of bitcoin rose to $ 57,000 this week, giving it a total value of over $ 1 trillion, while ethereum, the second largest cryptocurrency, broke for the first time the $ 2,000 token token – offering- and a total value of $ 226 billion.
Musk warned of the price of bitcoin and ethereum during a Twitter discussion about the nature of money. Responding to gold investor and bitcoin skeptic Peter Schiff, Musk SAPS: “Money is just data that allows us to avoid the inconveniences of barter. This data, like all data, is subject to latency and errors. The system will evolve to the one that minimizes both. That being said, bitcoin and ethereum seem big. “
Earlier this week, Musk sought to distance himself from Tesla’s $ 1.5 billion bitcoin purchase, which suddenly pushed up the price of bitcoin when it was revealed.
“Tesla’s action does not directly reflect my opinion,” Musk said Twitter in response to a Bloomberg interview with the executive director of bitcoin and cryptocurrency exchange Binance.
“Having something bitcoin, which is simply a less stupid form of liquidity than cash, is adventurous enough for an S&P 500 company … When fiat currency has a real negative interest, only a fool would not look elsewhere part. Bitcoin is almost the same as bs as fiat money. The key word is “close.”
Bitcoin’s mega 2021 rally has seen its price almost double since the beginning of the year due to a combination of institutional adoption on Wall Street, corporate interest and retailers piling up on the market.
“There are a number of reasons why bitcoin is growing, but what stands out most is the trend that MicroStrategy started and popularized Tesla: moving institutional balance sheets to bitcoin to hedge against inflation,” said Nicholas Pelecanos , head of trading at the NEM blockchain network, said in comments via email.
The bitcoin price rally has accelerated in recent weeks, helped above by Elon Musk and Tesla.
Coinbase
Meanwhile, Ethereum has benefited from the growth of decentralized finance (DeFi) – using cryptocurrency technology to recreate traditional financial instruments such as interest rates, known as “yields” and insurance. Many of the largest DeFi projects are built over the ethereum blockchain, pushing the higher price of ethereum as users flood the network.
“We have reached a turning point where people are questioning traditional monetary systems and recognizing that there are better and fairer options,” said Jai Bifulco, commercial director at the precious metals exchange based on the blockchain Kinesis, in comments via e -mail.
The vast market for bitcoin and cryptocurrencies, made up of thousands of digital chips, is now worth a staggering $ 1.7 trillion – up from $ 800 billion in early January.