Business World

‘Crypto is the future currency of earth, but don’t risk life savings’: Elon Musk sounds caution on crypto

Tesla’s Elon Musk has sounded a note of caution for investors looking to gain from the boom in the prices of cryptocurrencies such as Bitcoin, Ethereum, Dogecoin and others.

Elon Musk said that while he believes that crypto could be the default future currency of the earth, nonetheless, people shouldn’t invest their life savings into cryptocurrency.

“First of all, I think people should not invest their life savings in cryptocurrency. To be clear, I think that’s unwise,” Tesla’s CEO warned in a video.

So far in 2021, Elon Musk tweets have sent Bitcoin and Dogecoin prices soaring. Earlier this year, Musk added hashtag bitcoin to his Twitter bio, which sent Bitcoin prices to record highs.

In the following month this year, Musk tweeted ‘Doge’ and then followed it with another tweet saying: ‘Dogecoin is the people’s crypto’; and ‘No highs, no lows, only Doge’.

When asked about Dogecoin, Musk was seen saying that “the point is that dogecoin was invented as a joke, essentially to make fun of cryptocurrency”.

He also added that fate loves irony, and what could be the most ironic outcome is that the currency that was invented as a joke in fact becomes the real currency.

“Cryptocurrency is promising, but please invest with caution,” Elon Musk said.

“If you want to sort of speculate and, I don’t know, maybe have some fun, I mean, there’s a good chance that crypto is the future currency of earth” he said.

When asked about which one is it going to be?

“It could be multiple,” he replied.

Last month Elon Musk said that Tesla Inc sold 10 percent of its Bitcoin holdings to prove the liquidity of the cryptocurrency. Tesla had invested $1.5 billion in bitcoin.

The second-largest cryptocurrency Ethereum’s market capitalisation now stands at $403.84 billion, which is nearly half of Bitcoin’s $1 trillion market value. According to the data from CoinMarketCap, Ethereum price has zoomed over 16 times over the past year, while the market cap has soared over 17 times from nearly $23 billion.