Does Elon Musk Think Crypto Is Better Than Fiat?

Vignesh Karunanidhi
Does Elon Musk Think Crypto Is Better Than Fiat?
Source: IndexUniverse Crypto

Elon Musk has been an ardent crypto supporter. Last year, on the same day, his tweet about his take on crypto and fiat went haywire.

The conversation was started by Musk in a thread last year where he was talking about tech and cryptocurrency. In response to a question about what he thought about people “who are angry at you because of crypto,” he replied:

The “true battle is between fiat & crypto. On balance, I support the latter.”

Following his tweet last year, the price of bitcoin rose as the tweet was evident of Elon Musk’s support for crypto.

Elon Musk is not new to crypto

Elon keeps the whole crypto family happy with his crypto tweets every once in a while. In February 2021, Elon said that holding bitcoin is slightly better than holding conventional cash.

“However, when fiat currency has negative real interest, only a fool wouldn’t look elsewhere.”

Elon Musk’s tweet

As to whether Elon thinks crypto is better than fiat, his stance on crypto still looks the same. Even though Elon hasn’t bought nor sold bitcoin for the past four quarters, his bitcoin holdings still look unchanged. As of February, Tesla held over $1.3 billion in bitcoin.

Source: Fox Business

But in a recent SEC filing, Tesla claimed that it believes in the long-term potential of crypto assets. As per the filing in January 2021, the corporation looked into diversifying its portfolio and investing in digital assets, gold bullion, and other assets to improve its investment game.

“We believe in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash.” “We may increase or decrease our holdings of digital assets at any time based on the needs of the business and on our view of market and environmental conditions.”

Not just Elon, when it comes to a clash between crypto and fiat currencies, there is a higher probability that the vast majority of them will stand alongside crypto.