What Did Elon Musk Say About Cryptocurrency

Musk owns three different cryptocurrencies, simply should you?

Key points

• Elon Musk is the billionaire founder of PayPal and Tesla.
• Musk is a well-known cryptocurrency investor who “won’t sell.”
• He's provided some helpful advice for others thinking of investing in virtual currencies.

Elon Musk is well known for being a fan of cryptocurrencies and investing in them.

Even every bit Bitcoin and other popular coins saw their prices fall throughout 2022, Musk indicated he "won't sell" his cryptocurrency holdings. Musk owns three different virtual currencies -- Bitcoin, Ethereum, and Dogecoin -- although he has indicated he believes Dogecoin is better suited for transactions in the real-world than Bitcoin.

While Musk has made articulate he'due south put some of his own funds -- and some of Tesla's funds -- into cryptocurrencies, you may be wondering whether the billionaire believes that everyday Americans should buy virtual coins equally well. Here's what Musk has said most investing in this asset grade.

Elon Musk believes crypto investments are promising

Different some other big names in the business and investing worlds -- including Warren Buffett -- Musk conspicuously believes crypto investments accept a lot of promise and may deserve a identify within your portfolio.

"If y'all want to speculate and accept some fun — in that location’southward a skilful adventure that crypto is the future currency of Earth," Musk said in an interview.

Musk supports cryptocurrencies over fiat currencies, stating on Twitter: "The true battle is between fiat & crypto. On balance, I support the latter." Fiat currencies similar the U.S. dollar are government-issued funds not backed by physical assets such as silverish or gold. He likewise explained the reasoning behind his position, stating that "fiat currency tends to get diluted past whatever government it is. It ends upward being a pernicious revenue enhancement on people, especially those who take cash savings with a dilution of the money supply."

Musk has also indicated he plans to agree his crypto investments over the long-term, indicating "If the price of Bitcoin goes down, I lose coin. I might pump, simply I don’t dump. I definitely do not believe in getting the price high and selling or anything like that,” Musk said. “I would like to see Bitcoin succeed."

Musk warns not to ‘bet the farm’

Although Musk thinks cryptocurrencies show definite promise and they are probable worth investing in, he likewise doesn't want people to get overboard with putting money into an untested nugget class that's both volatile and highly speculative.

"Cryptocurrency is promising, simply please invest with caution,” Musk tweeted in May 2021. Musk has likewise commented that he "definitely wouldn't bet the farm on crypto," and said his investments were made "out of curiosity" and he believes "true value is building products & providing services to your young man human beings, not money in any form."

In other words, while he believes there's potential for cryptocurrencies to thrive in the future -- he'southward warned information technology's not clear which coins will succeed in the long-term
and
at that place's a lot of speculation involved in investing in them. And so investors should utilize caution, include them into their portfolio in moderation, and consider too investing in companies that offer products and services that add value to people'due south lives.

This communication is sound, and those who desire to put some money in cryptos should likely follow Musk's programme to invest for the long-term, and make sure they aren't acquiring too large of a stake in any i money due to the outsized risk.