Billionaire Elon Musk, Tesla's chief executive, said this week that he believes the soaring cryptocurrency bitcoin is "on the verge" of entering traditional finance.
Musk revealed last month that he is open to accepting payments in bitcoin. Musk made the comments this week in a public interview on the Clubhouse podcast that also covered human missions to Mars and Musk's implantable brain-computer connection project, Neuralink.
"At this point, I do think bitcoin is a good thing," Musk said in the crowded club chat room, adding that he doesn't have as strong a view on other cryptocurrencies as bitcoin.
"I'm a supporter of bitcoin. I'm late to the party, but a supporter. I think bitcoin is on the verge of widespread adoption by traditional finance people."
Musk's comments put him at odds with many global central bankers and regulators who have recently warned that bitcoin is primarily used for illicit purposes and money laundering.
Musk said people have tried to get him involved in bitcoin transactions in the past, dating back to 2013, when bitcoin was worth a fraction of what it is now -- less than $100.
The price of bitcoin has surged 200 percent since October, surging above $40,000 per bitcoin before easing back slightly. The burgeoning bitcoin rally has largely been attributed to enthusiasm for the cryptocurrency and increased support from institutional investors such as payments giant PayPal — despite fears of a bubble emerging in circles.
Last week, Musk's tweets about Bitcoin and the real cryptocurrency Dogecoin gave the coin a short-term boost, and he gave the Wall Street hedge fund that has long been shorting GME stock on the WallStreetBets forum, but also A long-awaited hint from bullish retail traders who are restricted from trading the company's shares.
"I have to be careful what I say, it affects the market," Musk said via the Clubhouse podcast channel, tweeting about the power of his nearly 45 million followers.
“The funniest outcome is that… Dogecoin will be the currency of the planet in the future. Sometimes I make jokes about Dogecoin, but they are. Dogecoin is used as a joke to make fun of cryptocurrencies, but Fate is often ironic."
Last week, Musk changed his Twitter signature to "#bitcoin" and commented on Bitcoin: "In retrospect, it was inevitable." Last week, after the price of Bitcoin fell below $30,00 per Bitcoin, There was a sudden surge of 20% last week.
Bitcoin prices have retreated since Musk's tweet, erasing nearly all of the short-lived gains.
Musk's latest Clubhouse remarks have so far failed to drive bitcoin prices higher, and expectations were high ahead of his interview that he may be ready for a Tesla-related bitcoin announcement.
When Musk was asked in December whether it would be possible to convert billions of Tesla's dollar holdings into bitcoin, his tweeted response sparked concern about his electric car. There is speculation that companies can add Bitcoin as an asset in their balance sheets.
