Tesla founder and CEO Elon Musk commented on the company’s purchase of bitcoins, hinting that it was not his decision. He called the investments themselves “quite risky.”
In an interview with Bloomberg, the head of Binance Champeng Zhao noted that despite Musk’s passion for the Dogecoin project, his company did not buy this altcoin, but the first cryptocurrency for $ 1.5 billion.
Tesla’s action is not directly reflective of my opinion. Having some Bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P500 company.
— Elon Musk (@elonmusk) February 19, 2021
“Tesla’s actions do not directly reflect my opinion. Having some bitcoin, which is simply a less stupid form of liquidity than cash, is risky enough for an S&P 500 company, ”Musk wrote back.
He added that he is an engineer, not an investor, and does not even own any shares in public companies other than Tesla.
“However, when fiat currencies have negative real rates, only a fool would not look elsewhere. Bitcoin is almost as good as fiat money. The keyword is “almost,” Musk added.
Earlier, former investment director of Goldman Sachs, Gary Black, closed a long position in Tesla shares after the company bought Bitcoin.
Analysts at JPMorgan doubted corporations would follow the lead of the electric car maker and invest in digital gold. They named the high volatility of the asset as the reason.
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