Elon Musk – the South African entrepreneur behind billion-dollar companies such as Tesla and SpaceX – is a big fan of bitcoin and many of its crypto cousins, but even he says there are limits to what people can and should be doing.
Elon Musk: Make Sure You Invest with Caution
Prior to gearing up for his performance on “SNL” as the guest host, he sat down with CNBC and gave his thoughts on some of the big things happening in the world of crypto right now. The man has made headlines at nearly every turn, often praising both bitcoin and its rival Dogecoin, even claiming that he wanted to leave the latter “on the moon” in a recent statement. It is still up for debate whether he literally wants to leave Dogecoin units on the moon via one of his SpaceX rockets or if he just wants to see the price jump super high.
Perhaps his biggest contribution to the crypto scene occurred in early February when he decided to purchase more than $1.5 billion worth of bitcoin, the world’s number one digital currency by market cap. This ultimately caused the asset to reach its then all-time high of $57,000, which is what it is trading for right about now, though two months later, it jumped to $64,000 per unit following news that Coinbase stock was going to be listed on the Nasdaq.
Either way, Musk is always there to push cryptocurrency and make sure it gets its time in the spotlight. However, he has always been an advocate for investing intelligently, and in his latest interview, he stated that people need to exercise extreme caution when deciding which coins should garner their financial attention. He explained:
Cryptocurrency is promising, but please invest with caution. People should not invest their life savings into cryptocurrency, to be clear. That is unwise. If you want to speculate and have some fun, there is a good chance that crypto is the future of currency of the Earth. Then it is like, which one is it going to be? Maybe there will be multiple, but it is all speculation at this point.
This May Split Traders Down the Middle
While many people have come to view Musk as an official spokesperson for bitcoin and crypto, there are likely to be several individuals that disagree with his recent words given that BTC is now being viewed not only as a speculative tool, but as a store of wealth that can keep one’s portfolio stable during times of economic turmoil. This attitude has been prevalent ever since the coronavirus pandemic began.
Then again, others are taking Musk’s words to even taller heights, with figures such as James Ledbetter – editor of fintech newsletter FIN – claiming that you should only invest what you can afford to part with permanently.