Elon Musk explained his recent investment in bitcoin that the cryptocurrency is better than fiat money in today’s negative interest rates.
‘To be clear, I am *not* an investor, I am an engineer. I don’t even own any publicly traded stock besides Tesla. However, when fiat currency has negative real interest, only a fool wouldn’t look elsewhere.
Bitcoin is almost as bs as fiat money. The key word is “almost”, ‘ he twitted.
Earlier in the month, Tesla bought $1.5 billion worth of bitcoin as part of a new investment policy, according to the company’s filing in the Securities and Exchange Commission (SEC).
The company explained it bought the cryptocurrency for “more flexibility to further diversify and maximize returns.” Tesla also said it would start accepting bitcoin as a payment method for its products.
This happened after the company updated its investment policy in January 2021. Within the framework of the new one, it can invest part of the money in alternative reserve assets.