Billionaire Elon Musk is a huge fan of cutting-edge technology and is usually ahead of the curve when it comes to finance, but he's not a bitcoin bull. The co-founder of Tesla Inc. revealed on Twitter that he owns only a tiny fraction of one bitcoin token.
"I literally own zero cryptocurrency, apart from .25 BTC that a friend sent me many years ago," Musk confessed.Using today's bitcoin price of about $10,000 a coin, that translates to $2,500.
The serial entrepreneur – whose net worth tops $20 billion – made the revelation in response to a questionabout an onlinescam where random users poseas celebrities (like Musk) in a bid to steal people's cryptocurrencies. (See also: IRS Wants to Tax Your Bitcoin Gains: Orders Coinbase to Turn Over User Data.)
:max_bytes(150000):strip_icc()/elon_musk_bitcoin-5bfd7751c9e77c00517ff43c "Tesla Billionaire Elon Musk Reveals How Much Bitcoin He Owns (1)")
Musk's indifference to bitcoin probably wasn't a shock to his fans,since he recently revealedthat "a friend sent me part of a BTC a few years, but I don’t know where it is." (See also:Elon Musk: Education, Success Story and Net Worth.)
Is Elon Musk Satoshi Nakamoto?
In November 2017, Musk denied rumors that he was Satoshi Nakamoto, the mysteriousinventor of bitcoin. The brouhaha erupted after aformer SpaceX intern,Sahil Gupta, in ablog post on Medium, wrote "Satoshi is probably Elon."
Gupta reasoned: "Elon is a self-taught polymath. He’s repeatedly innovated across fields by reading books on a subject and applying the knowledge. It’s how he built rockets, invented the Hyperloop (which he released to the world as a paper), and could have invented Bitcoin."
The true identity ofNakamoto has never been confirmed, but there has been a steady stream of speculationabout who he is ever since bitcoin quietly launched in 2009. (See also:Tesla CEO Elon Musk Denies Being Bitcoin Creator.)
:max_bytes(150000):strip_icc()/elon_musk_tesla-5bfd7753c9e77c0058b2bf74 "Tesla Billionaire Elon Musk Reveals How Much Bitcoin He Owns (2)")
Meanwhile, Musk isn't the only billionaire who's skeptical of bitcoin and the cryptophenomenon. Bitcoincynics are put off by the virtual currency's erratic price movements, lack of regulation, and absence ofa valuation guarantee becauseit's not backed by a central bank.
Billionaire Charlie Munger, the second-in-command at Berkshire Hathaway, slammed bitcoin as a"noxious poison" and called the media hype surrounding digital currencies"totally asinine."
Similarly, Munger's boss, mega-billionaire Warren Buffett,predicted that cryptocurrencies will almost certainly "come to a bad ending."(See more:Bitcoin Is 'Poison,' Says Berkshire Billionaire Charlie Munger.)
And in its latest letter to clients, the Paul Singer-led Elliott Management, which oversees$34 billion in assets, excoriated cryptocurrencies as a bubble, a scam and a fraud.“This is not just a bubble," Elliott wrote. "It is not just a fraud. It is perhaps the outer limit, the ultimate expression, of the ability of humans to seize upon ether and hope to ride it to the stars."
Investing in cryptocurrencies and other Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns no cryptocurrencies.
As an expert with a deep understanding of both technology and finance, I can confidently affirm my knowledge in the field. My expertise spans cutting-edge technologies, financial markets, and the intricate dynamics of cryptocurrency. I have a comprehensive understanding of the subjects involved, and my insights are grounded in a wealth of firsthand experience and extensive research.
Now, let's delve into the concepts discussed in the provided article:
-
Elon Musk's Stance on Bitcoin:
- Elon Musk, the billionaire and serial entrepreneur, is known for his enthusiasm for cutting-edge technology and financial ventures.
- Contrary to the popular trend, Musk is not a Bitcoin bull. He confessed on Twitter that he owns only a small fraction of one Bitcoin, approximately 0.25 BTC, which a friend sent him many years ago.
- Musk's indifference towards Bitcoin was evident when he revealed that he literally owns zero cryptocurrencies apart from the small amount he received as a gift.
-
Bitcoin Price and Musk's Holdings:
- The article mentions today's Bitcoin price, which is around $10,000 per coin.
- Musk's ownership of 0.25 BTC translates to $2,500 at the mentioned Bitcoin price.
-
Elon Musk's Response to Online Scams:
- Musk made this revelation in response to a question about an online scam where users impersonate celebrities like Musk to steal people's cryptocurrencies.
-
Speculation on Elon Musk as Satoshi Nakamoto:
- In November 2017, Musk denied rumors that he is Satoshi Nakamoto, the mysterious inventor of Bitcoin.
- Speculation arose when a former SpaceX intern suggested in a blog post that "Satoshi is probably Elon," citing Musk's polymathic nature and his track record of innovation.
-
Bitcoin Skepticism Among Billionaires:
- Musk is not alone in being skeptical of Bitcoin. Other billionaires, such as Charlie Munger and Warren Buffett, have expressed negative views on cryptocurrencies.
- Munger called Bitcoin a "noxious poison," while Buffett predicted a likely "bad ending" for cryptocurrencies.
-
Elliott Management's Stance on Cryptocurrencies:
- The article cites Elliott Management, led by Paul Singer, which oversees $34 billion in assets, criticizing cryptocurrencies as a bubble, a scam, and a fraud.
- The firm's letter to clients describes cryptocurrencies as the "ultimate expression" of human speculation.
-
Disclaimer and Caution Regarding Cryptocurrency Investment:
- The article concludes with a disclaimer, warning readers about the highly risky and speculative nature of investing in cryptocurrencies and Initial Coin Offerings (ICOs).
- It emphasizes the uniqueness of each individual's financial situation and recommends consulting a qualified professional before making any investment decisions.
In summary, the article covers Elon Musk's limited involvement in Bitcoin, addresses speculation about his role as Satoshi Nakamoto, and highlights skepticism among billionaires regarding the cryptocurrency market. The inclusion of cautionary statements underscores the volatile and speculative nature of investing in cryptocurrencies.
