Musk Says He’s Not Urging People to Invest in Cryptocurrencies After Industry Downturn
In his most recent interview with bloombergElon Musk was asked by the host about the “carnage” on the cryptocurrency market and whether people should still invest in decentralized assets, as the market experienced last month, and the answer was not “sharp” for the industry .
Musk said he never said people should invest in cryptocurrencies and only buy bitcoin as a personal investment, while urging others not to expose themselves to such risky assets.
JUST IN: “I never said people should invest in crypto. In the case of Tesla, SpaceX, we all bought some bitcoin, but that’s a small percentage of our total cash assets,” says Elon Musk https: //t.co/BLcp2WIvub #Qatar Economic Forum #منتدى_قطر_الاقتصادي pic.twitter.com/R1ZfRGxWBR
— Bloomberg Live (@BloombergLive) 21 June 2022
The entrepreneur also noted that Tesla and SpaceX’s bitcoin holdings are only a small part of the total assets on their balance sheets, and that it is not exposing the companies to significant risks, clarifying that when buying volatile digital assets. Risk-management was important.
Musk also said that he will continue to support Dogecoin as he believes in the decentralized nature of the project and its use as a payment tool. Tesla still accepts DOGE payments for the company’s goods, despite the asset’s 50% correction over the past 45 days and an even bigger drop than ATH.
The crypto market is no longer mainstream
After the crypto market crash of over 30%, most institutional investors closed their positions and left the digital asset market for good. As for large companies and corporations, a large portion of them have abandoned support for crypto payments until price action returns to normal.
While bitcoin lost a significant amount of its value, the market did not expect a fall below 2017 ATH, around $19,000, causing a massive $7 billion loss over the weekend.