Elon Musk says he supports crypto over fiat currency in reaction to Bitcoin backlash
Around $1 trillion wiped from cryptocurrency market following sell-off
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Elon Musk says that he supports crypto over traditional fiat currency in a reaction to the Bitoin backlash he has faced.
Bitcoin and other cryptocurrencies have dramatically slumped since the Tesla CEO announced his company would no longer accept it as payment for their electric vehicles.
Musk addressed the situation on Twitter on Saturday and threw his weight firmly behind cryptocurrencies.
“The true battle is between fiat & crypto. On balance, I support the latter,” Musk tweeted in response to a follower who asked him about the anger he has faced.
Fiat currency is paper money supported and backed by a government, such as the US dollar.
The crypto crash that followed Tesla’s Bitcoin announcement has seen around $1 trillion wiped off the market’s value, and Bitcoin fell as much as 30 per cent to around $30,000 on Wednesday.
Earlier this month Musk said Tesla’s Bitcoin decision was because of the environmental impact of Bitcoin mining, much of which is powered by cheap coal-powered electricity in China.
Experts have estimated that the Bitcoin industry alone uses as much power each year as a country the size of Malaysia.
Musk announced in February that Tesla had bought $1.5bn worth of Bitcoin and had started to accept it as a payment option.
With prices falling over the lat week, Musk took to Twitter to post the “Diamond hands” emoji, signaling that he was not selling Bitcoin.
The phrase is used by financial traders who hold onto stocks during a sell-off because they see long-term profitability.
Earlier this week Musk also posted a Dogecoin meme on Twitter and assured his followers he had not and would not sell his holdings in it.
The price of Dogecoin fell significantly following Musk’s appearance on Saturday Night Live last month in which he called cryptocurrency a “hustle” during one sketch.
The price of Bitcoin had climbed back up to more than $37,500 on Saturday, down from a high last month of $64,000.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments