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Elon Musk is at it again when it comes to crypto. This time, his attitude appears to have shifted into more positive territory, questioning whether it’s possible to transform much of the money held by Tesla into bitcoin.
Elon Musk Needs a Little Crypto Advice
Musk appears tempted by the recent trend of institutional players that have gotten their fingers on bitcoin and willingly entered the crypto space. These companies include MicroStrategy, Stone Ridge, Square and many others. In fact, Musk is even going to Michael Saylor – the CEO of MicroStrategy – for help and advice.
Michael Saylor earned a reputation this year for being bitcoin’s biggest institutional fan considering his company has put more than $1 billion into the world’s largest and most popular digital currency by market cap. The asset has gone from being much more than a speculative asset since the beginning of the year, and the coronavirus pandemic has caused many companies to rethink their attitudes towards crypto. They now see it as a potential store of wealth; a hedge tool that can keep one’s money safe during times of economic strife.
The company initially purchased bitcoin at $12,000 back in August. This was followed by another monster purchase in September, and then a third major purchase a few months later. The company then announced that it was looking to raise about $400 million more so it could potentially engage in a fourth purchase of bitcoin before 2020 was over.
So, if Musk is serious about turning his company’s holdings into BTC, he’s likely asking the right person. Saylor took to Twitter to tell the Tesla and SpaceX CEO that he was on the right track, commenting:
Do your shareholders a $100 billion favor. Other firms on the S&P 500 would follow your lead and in time, it would grow to become a $1 trillion favor.
Saylor is clearly convinced that bitcoin is the money of the future. Musk then responded to Saylor’s words by asking if “such large transactions were even possible.” Saylor then issued an affirmative response, claiming that virtually anything was possible with bitcoin.
Changing His Tune All of a Sudden?
The king of crypto has surged by more than 200 percent since the beginning of the year, initially starting January at around $7,000 per unit. Over the past nine months, the currency has enjoyed the most bullish run of its short, yet significant history, spiking to more than $23,000 per unit at press time.
Musk’s questions regarding bitcoin transactions come after a rather negative tweet in which he claimed that bitcoin was as “bs as fiat currencies.” This put a lot of analysts and traders on the edge, making them wonder where Musk stood in the long run considering he’s been quite kind to cryptocurrencies – particularly Dogecoin and bitcoin – in the past.