A long-time proponent of cryptocurrencies, Tesla’s Elon Musk has sounded a note of caution for investors to profit from the prices of Ethereum, Bitcoin, Dogecoin and others.
Musk expressed that while he believes that cryptocurrency could be the future currency, nonetheless, people should not invest their life savings into crypto. Tesla’s CEO warned that first of all, he thinks people shouldn’t invest their life savings into crypto. To be clear, he thinks that’s unwise.
So far in this year, tweets by Elon Musk have set Dogecoin and Bitcoin prices to record high. Expressing his views on Dogecoin, he said that the point is that the Shiba Inu-themed cryptocurrency was invented as a joke, just to make fun of crypto. He further added fate loves irony, and what could be the most ironic outcome is it becomes the real currency. Crypto is promising but please invest with caution.
According to him it should be considered speculation at this point and cautioned not to go too far on the crypto speculation part. A month ago, Elon Musk told that Tesla Inc. sold 10% of its bitcoin holdings to prove the liquidity of the crypto. While clarifying, he said that he hasn’t sold any of his bitcoin thereby retaining his personal investment.
Ethereum, the 2nd largest cryptocurrency’s market capitalization now stands at $403.84 billion. This is approximately half of Bitcoin’s $1 trillion market worth. As per reports, Ethereum price has surged over 16 times from $203 as of 7th May 2020 to $3,490 as of 6th May 2021. The market cap has reached 17 times from approximately $23 billion.