Due to negative interest rates, the Tesla boss thinks it would be “stupid” not to look around for alternatives like Bitcoin.
On February 19, Elon Musk responded to an interview with Binance CEO Changpeng Zhao, who was surprised at Bloomberg that the Tesla boss is so enthusiastically promoting Dogecoin ( DOGE ).
In response, Musk replied that „it would be stupid“ not to consider alternatives in the face of negative interest rates on fiat assets
Zhao had previously speculated in an interview that Tesla’s recent massive Bitcoin investment, valued at $ 1.5 billion , is evidence that Musk is actually convinced of Bitcoin ( BTC ) .
The Tesla boss then made it clear that Tesla’s actions do not necessarily reflect his personal opinion. He adds to this denial by arguing that „Crypto Trader is just a less stupid form of money than cash“. An investment in the market-leading cryptocurrency by a company listed in the important S&P 500 stock index would be „adventurous enough“.
Samson Mow, Managing Director of Blockstream, comments on Musk’s objection with the following statement: „You’re just sad that you didn’t get into [Bitcoin] earlier.“
With his argument that it would be foolish not to consider an „alternative to fiat currencies“, the carmaker made an apparent plea for Bitcoin, but he qualified this again in the next sentence:
“If negative interest rates are charged on assets in the form of fiat currencies, then it would be stupid not to look elsewhere. Bitcoin is almost as bad as fiat currencies. The emphasis is on ‚almost‘.“
For many observers, Elon Musk’s Twitter account is the catalyst for the renewed upswing in Dogecoin, after it was first “pumped up” and then “dropped” ( pump-and-dump ) by investors in the Reddit forum . The “richest person in the world” later referred to the DOGE on Twitter as “the people’s cryptocurrency ” , which reignited the “dog”.
On February 15, however, Musk warned that a large part of the available amount of DOGE in circulation would be in the hands of a few, which is why he offered these major investors to buy their assets from them in order to make the „joke cryptocurrency“ truly decentralized again.