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“Almost as big nonsense as Fiat money”: Musk dampens Bitcoin euphoria after Tesla’s entry

The exchange of 1.5 billion dollars of its extensive reserves this January has already paid off: No sooner had Tesla announced this investment and plans to accept payments in the cryptocurrency as soon as possible, when it began to rise again rapidly, so that Tesla should meanwhile be at least 50 percent in the plus. Perhaps that will be scary even to the always courageous Tesla CEO Elon Musk: Bitcoin is almost as big nonsense as state “fiat” money, he wrote on Twitter on Friday, but initially without noticeably depressing the course.

Update: On Saturday (there is no real weekend on the crypto exchanges) Bitcoin rose even further to prices above 57,000 dollars. The total value of all units exceeded $ 1 trillion for the first time. The market value of Tesla, on the other hand, has fallen by a good 11 percent since the end of January to around 750 billion dollars. At the close of trading on Friday, the stock was priced at $ 781.30.

Tesla boss wants to strengthen Dogecoin

Today’s currencies are referred to as fiat money, which get their basic value solely from the fact that they are official means of payment and controlled by central banks – unlike in earlier times, they are not backed by physically scarce goods such as gold. Cryptocurrencies such as Bitcoin, on the other hand, as the first of these, can be programmed so that their volume remains limited forever. That and the supposed uncontrollability by governments has given them many followers, and the recent price explosion in Bitcoin also contributed to the euphoria.

Musk is less of a Bitcoin fan than Tesla’s recent activities and earlier statements by himself might suggest. He has already highlighted the alternative Dogecoin in the past. It was launched as a mere parody, but has now reached a total value of around $ 7 billion. To bolster it, Musk recently offered to buy out owners with dominant positions in it for dollars.

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What the Tesla boss plans to do with Dogecoin and whether anything really is unknown is unknown. As he announced in connection with one of the many questions about it on Twitter, he definitely wants to create a crypto currency for a coming civilization on Mars. But at least Musk revealed more on Friday about Tesla’s motivation for buying Bitcoin. So there was nothing more than a cool business consideration behind it.

“Ancient cryptography versus real goods”

“Just an idiot” wouldn’t look elsewhere if negative interest is paid on fiat currency, Musk said. Bitcoin is almost as “bs” as state money, he continued, which is an abbreviation for “bullshit”, i.e. nonsense or nonsense. The “almost” is the decisive word in his sentence. And in another message, the Tesla boss also revealed why, apart from this restriction, he is not really convinced of Bitcoin either: “A hash text file with ancient cryptography can be exchanged for real goods and services? Remarkable.”

However, all other cryptocurrencies are also based on “ancient cryptography” in the sense of mathematical procedures that are used for encryption and verification. In this respect, it was not clear where Musk sees the decisive difference, for example with Dogecoin, or what he has come up with for his Mars currency. Meanwhile, some of his followers wished he should write more about Tesla on Twitter for a change instead of such distant concepts.

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