Before Musk’s comments, Ethereum’s price was up 12%.
Elon Musk Revealed He Owns Ethereum
On Wednesday afternoon, Elon Musk appeared at the B Word Conference, which was hosted by the Crypto Council for Innovation. He said that he owns the cryptocurrency ethereum.
After Musk mentioned it, Ethereum’s price rose by over 12%. At that time, the price was already rallying.
Musk said that he supports cryptocurrency in general, even though it has potential environmental risks. He said that one of the things to watch out for with cryptocurrency is the use of energy that’s too much which is not good for the environment.
If bitcoin mining will be increasingly powered by renewable energy, his Tesla company will start accepting again bitcoin for transactions.
He said that the only publicly traded stock that he owns is Tesla. But he personally owns, not just ethereum, but also bitcoin and dogecoin. He also noted that he has been holding his bitcoin for the long term.
He understands that if the price goes down, he’d lose money. He added that he wants bitcoin to succeed.
He also confirmed that both Tesla and SpaceX own bitcoin.
Earlier this year, Tesla disclosed that it had $1.5 billion worth of Bitcoin. But Musk didn’t reveal how much Bitcoin that SpaceX owns.
Bitcoin has faced scrutiny lately for the amount of energy it uses to mine it. It’s one of the major factors that Tesla has stopped accepting Bitcoin as payment.
Musk said that Bitcoin is shifting to renewables.
Another participant of the conference was Ark Invest CEO Cathie Wood. She believes that Bitcoin will more environmentally friendly than gold mining.
She added that Bitcoin has a lot to offer in social aspects. For instance, it could offer financially underserved people access to payment technology without friction.
Furthermore, Cathie believes that Bitcoin offers a kind of transparency that the traditional financial systems can’t offer.
Jack Dorsey was also present at the conference. He said that crypto could become the Internet’s native currency as it could help small and large businesses to grow faster. He added that if Bitcoin existed before Twitter, the platform would not be dependent on its advertising model.
When Musk asked why Dorsey’s social media platform Twitter won’t allow advertisers to pay in crypto, Dorsey believes that any type of payment that advertisers would want to use would be allowed.
However, he said that he wanted to focus more on creating economic incentives in the network without relying on advertising.
Is the Right Time to Buy Ethereum?
Just because this crypto’s price soars, it doesn’t mean that it’s a good investment. It’s high-risk crypto. Still, Ethereum could have a competitive advantage because of how it is mined.
Ether is making moves to ensure that the technology is more energy-efficient. Furthermore, its widespread utility could benefit this crypto.
However, it’s still an extremely volatile investment. In May, it lost 50% of its value. Although it has recovered, it is tough to accept downturns.