Elon Musk Says Prices 'Seem High' After Bitcoin's Total Market Value Passes $1 Trillion

Tesla CEO Elon Musk, who has been tweeting on cryptocurrencies with greater frequency for some time now, has said that prices of Bitcoin now "seem high".

His comments came after Bitcoin's total market value passed $1 trillion for the first time on Friday, according to data from CoinDesk.

The leading cryptocurrency reached an all-time high on $57,492 in the past 24 hours, showed the data. In a reply to crypto skeptic and gold bug Peter Schiff, Musk said that "BTC & ETH do seem high."

India supports blockchain but not cryptocurrency
A view of Ducatus cafe, the first cashless cafe that accepts cryptocurrencies such as Bitcoin, on their opening day in Singapore December 21, 2017 REUTERS/Edgar Su/File Photo

Schiff argued that gold was "real money" and better than both Bitcoin and fiat currency. "An email saying you have gold is not the same as having gold. You might as well have crypto," Musk said in a tweet on Saturday. "Money is just data that allows us to avoid the inconvenience of barter. That data, like all data, is subject to latency and error. The system will evolve to that which minimises both," he added.

Musk's electric vehicle company Tesla earlier this month revealed that it has invested $1.5 billion in the Bitcoin, leading to a surge in the prices of the cryptocurrency. Tesla said it will also "begin accepting bitcoin as a form of payment" for its products in the near future.

Elon Musk
Elon Musk said Tesla cars will soon have 1,000 kilometers range per charge Wikimedia Commons

According to early estimates from analyst Dan Ives at Wedbush Securities, Tesla has already made a profit of about $1 billion over the last month from its investment in Bitcoin. "Based on our calculations, we estimate that Tesla so far has made roughly $1 billion of profit over the last month.

To put this in perspective, Tesla is on a trajectory to make more from its Bitcoin investments than profits from selling its (electric vehicle) cars in all of 2020," Ives wrote in a note published on Saturday.

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