In a tweet, Elon Musk said Bitcoin prices “seem high.” The world’s richest person was replying to Peter Schiff — a crypto skeptic and gold bug- who said the precious metal is better than Bitcoin and fiat money.
“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.” In a following post, he added, “that said, BTC & ETH do seem high lol.”
Musk earlier called Bitcoin a “less dumb” version of cash. The largest cryptocurrency rose as much as 3.4% to a record high of $57,527 on Saturday before paring gains to $57,040 at 1:26 p.m. in New York. It’s surged 56% since the end of January and more than quadrupled last year. For several years after its debut more than a decade ago, Bitcoin traded for just a few cents.
Crypto believers are dueling with skeptics for the dominant narrative around the climb: the former see an asset being embraced for its ability to hedge risks such as inflation, while the latter sense a precarious mania riding atop waves of monetary and fiscal stimulus.
Musk gave impetus to Bitcoin joining the mainstream when Tesla Inc. said it invested $1.5 billion and was prepared to begin accepting the cryptocurrency as a form of payment for its cars. According to Dan Ives at Wedbush Securities, Tesla has made a profit of about $1 billion over the past month from that bet.