Telsa billionaire Elon Musk, tweets about dogecoin meme-based cryptocurrency helped drive it to a $ 10 billion valuation, has warned that the price of bitcoin and ether “seems high.”
The price of bitcoin has risen nearly 500% over the past twelve months, in part due to pro-bitcoin and cryptocurrency tweets from Musk and his electric vehicle company Tesla that has added bitcoin to its balance sheet, following in the footsteps of the American software company MicroStrategy
MSTR
Elon Musk, the chief executive of Tesla and SpaceX, has long been known as a cryptocurrency … [+]
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The price of bitcoin rose to $ 57,000 this week, bringing it to a total value of more than $ 1 trillion, while ethereum, the second largest cryptocurrency, broke $ 2,000 per ether for the first time. which gave it a total value of $ 226 billion.
Musk warned of the price of Bitcoin and Ethereum during a discussion on Twitter about the nature of money. In response to bitcoin investor and skeptic Peter Schiff, Musk dit: “Money is just data that allows us to avoid the hassle of bartering. This data, like all data, is subject to latency and errors. The system will evolve to the point of minimizing both. That said, bitcoin and l ‘ethereum seems elevated. “
Earlier this week, Musk tried to distance himself from buying Tesla bitcoin for $ 1.5 billion, which raised the price of bitcoin sharply when it was revealed.
“Tesla’s action doesn’t directly reflect my opinion,” Musk said via Twitter in response to a Bloomberg interview with Binance bitcoin and CEO.
“Having a little bit of bitcoin, which is simply a less silly form of liquidity than cash, is adventurous enough for an S&P 500 company … When the fiat currency has a negative real interest, only a fool would look nowhere else.as trust money.The keyword is “almost”.
Bitcoin’s 2021 mega rally has seen its price nearly double since the beginning of the year thanks to the combination of Wall Street’s institutional adoption, corporate interest and retailers that are accumulating in the market .
“There are a number of reasons why bitcoin is rising, but what stands out most is the trend that MicroStrategy started and that Tesla popularized: moving institutional balance sheets to bitcoin to protect itself from inflation,” he said. Nicholas Pelecanos, head of commerce for the blockchain network NEM, said in comments sent by email.
The rise in the price of bitcoin has accelerated in recent weeks, helped by Elon Musk and Tesla.
Coinbase
Meanwhile, Ethereum has benefited from the rise of decentralized finance (DeFi), which uses cryptocurrency technology to recreate traditional financial instruments such as interest, known as “yield” and insurance. Many of the larger DeFi projects are built on top of the ethereum blockchain, which increases the price of ethereum as users flood the network.
“We have reached a turning point where people question traditional monetary systems and recognize that there are better and fairer options,” said Jai Bifulco, commercial director of blockchain-based precious metals exchange, Kinesis, in comments sent by email.
The vast market for bitcoins and cryptocurrencies, made up of thousands of digital tokens, is now worth an impressive $ 1.7 trillion, up from $ 800 million in early January.