Elon Musk Now Says Bitcoin Price ‘Seems High’

Jay Ramey
·2 min read
Photo credit: Tesla
Photo credit: Tesla

From Autoweek

  • Tesla CEO Elon Musk appears to suggest that the current bitcoin price is too high, after a significant rally in 2021.

  • Tesla has purchased $1.5 billion worth of the cryptocurrency in the past months, likely as its own investment.

  • Elon Musk has been vocal about a number of cryptocurrencies over the past several weeks, after Tesla said that it would begin accepting bitcoin for its products.

Days after it was revealed that Tesla had purchased over a billion dollars worth of bitcoin sometime in the last two months, company CEO Elon Musk has taken to Twitter to opine on bitcoin values just as the cryptocurrency ballooned to another record late last week. Tesla is believed to have made the mammoth purchase weeks prior to Musk's latest stream of comments about bitcoin and other cryptocurrencies on social media, and prior to an announcement that the automaker would begin accepting bitcoin for its cars.

"Money is just data that allows us to avoid the inconvenience of barter," Musk tweeted.

"That data, like all data, is subject to latency & error. The system will evolve to that which minimizes both," Musk added in the same tweet.

"That said, BTC & ETH do seem high lol," he added, referring to bitcoin and ethereum, another cryptocurrency.

However, Musk did not elaborate just where he thought the price of bitcoin should be at the moment. Bitcoin had reached a price of $57,000 by the end of last week.

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Tesla's announcement that it would begin accepting bitcoin for its vehicles has not been followed up with any details yet, but it's prudent to point out that cryptocurrency enthusiasts have already bought cars after converting their bitcoin holdings into cash. Tesla's announcement seemed to suggest that the automaker would accept bitcoin directly.

Photo credit: Hearst Owned
Photo credit: Hearst Owned

The cryptocurrency has surged dramatically since the start of the year, reaching a market cap of $1 trillion in the past few days after a rally of over 300% over the past half year, driving some industry watchers to caution against trading it for a car or other large purchases as its value has fluctuated so much.

Tesla's own purchase of $1.5 billion worth of bitcoin had itself appeared to drive the price of bitcoin higher weeks prior, after the purchase was revealed to the public.

Over the weekend the Tesla CEO also posted a number of cryptocurrency-related memes, including dogecoin, and appeared willing to buy more to send its price higher.