Tesla founder responded to the Bitcoin skeptic and gold advocate Peter Schiff about what constitutes real money, taking the side of cryptocurrency.
The CEO of Euro Pacific Capital cited Musk’s recent tweet in which he called Bitcoin ‘as much nonsense as fiat’.
“I agree and simply think that Bitcoin, which is digital fiat, is even more nonsense than central-bank-issued fiat. Gold is not nonsense. It is real money and better than both,” Schiff said.
An email saying you have gold is not the same as having gold. You might as well have crypto.
Money is just data that allows us to avoid the inconvenience of barter.
That data, like all data, is subject to latency & error. The system will evolve to that which minimizes both.
— Elon Musk (@elonmusk) February 20, 2021
An email stating that you own gold does not mean you physically own the metal, Musk noted in response. In the same way, you can own cryptocurrency, he added.
“Money is simply data that allows us to avoid the inconveniences of barter. This data, like all data, is subject to latency and errors. The system will evolve to minimize both,” Tesla CEO said.
In early February it became known about his company’s investment in Bitcoin worth $1.5 billion. Musk recently called these investments ‘quite risky’ and hinted that it was not his decision.
However, the founder of Tesla and SpaceX has repeatedly supported the leading cryptocurrency on Twitter. For example, earlier he posted a Bitcoin hashtag in his profile description. The day before, Musk joined a flash mob with a reference to the asset’s price rising to $100,000.
Earlier in October, Schiff said that the speculative bubble around Bitcoin surpassed the hype in dot-com and mortgage markets.
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