Elon Musk Declares Support For Crypto Over Fiat Currencies

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by Tyler Durden
Saturday, May 22, 2021 - 10:45 AM

There's no doubt that Elon Musk is currently at the center of the Bitcoin universe.

It was Musk's public critiquing of Bitcoin mining's environmental impact that started a chain of events that led to Bitcoin crashing last week, before eventually steadying and paring some of its losses.

That means, for better or for worse, almost all eyes on the crypto community are on Musk. This weekend, they'll likely be happier with what they see.

Musk started the weekend be voicing support for cryptos over fiat currencies on Twitter. "The true battle is between fiat & crypto. On balance, I support the latter," Elon Musk Tweeted out early Saturday morning.

The comment came in a thread Musk had started comparing magic to technology. Musk was asked by a Twitter user what he thought about people “who are angry at you because of crypto.” Musk then offered the apparent olive branch, siding with crypto over fiat.  

Recall, Musk was center stage during this past week's crypto drama, which saw Bitcoin plunge to almost $30,000 before rebounding sharply back toward $40,000.

Bitcoin jumped from $35,000 to around $38,000 on Wednesday after Musk, who was the initial catalyst for the crypto selloff, tweeted that Tesla had "diamond hands."

Recall, on Monday of last week, Musk took to Twitter to try and quell speculation that Tesla had sold its bitcoin - following continued selling in cryptos heading into last week. 

"To clarify speculation, Tesla has not sold any Bitcoin," Musk wrote to start last week.

However, speculation that Musk and/or Tesla had sold their bitcoin continued through the week at the crypto community seemed to turn on Musk following a slide in prices. 

Separately last week, in a BBG TV Interview, Cathie Wood who has long been a fan of bitcoin and Elon Musk, kept her $500,000 price target for bitcoin and said that "the odds are going up now that we have had this correction. I don’t know if its going to be this year or not.”