Elon Musk expresses caution regarding cryptocurrency

Elon Musk answered paparazzi’s in a statement, “ the point is that dogecoin was invented as a joke, essentially to make fun of cryptocurrency”. He also added that fate is a sucker for irony, and the most ironic outcome could be that the currency invented as a joke becomes the real currency. “Cryptocurrency is promising, but please invest with caution,” Elon Musk tweeted in response to the TMZ video.

“If you want to speculate and, I don’t know, have some fun, there’s a good chance that crypto will be the world’s future currency,” he said. When asked which one will it be? “It could be several,” he responded. Elon Musk added that it should be regarded as speculation at this point and cautioned against going too far with the cryptocurrency speculation.

Elon Musk announced last month that Tesla Inc had sold 10% of its Bitcoin holdings to demonstrate the cryptocurrency’s liquidity. While he clarified that he has not sold any of his personal bitcoin, opting to keep them. Elon Musk stated in a tweet last month that Tesla sold 10% of its Bitcoin holdings to demonstrate the liquidity of Bitcoin as an alternative to holding cash on the balance sheet. Tesla invested $1.5 billion in bitcoin during the January-March quarter of this year and then sold 10% of its holdings, resulting in a small gain in the company’s first-quarter financials.

Ethereum, the second-largest cryptocurrency, now has a market capitalization of $403.84 billion, nearly half of Bitcoin’s $1 trillion market cap. According to Coin Market Cap data, the price of Ethereum has increased by more than 16 times from $206 on May 7, 2020 to $3,465 on May 6, 2021, while the market cap has increased by nearly 17 times from nearly $23 billion.

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