The announcement that Tesla has invested a whopping sum in Bitcoin rocked the entire crypto industry, but gold maximalist Peter Schiff seems to be seeing this from another perspective. Schiff is of the opinion that Elon Musk, the founder of Tesla, had bought Dogecoin before investing in Bitcoin.
Today, it was declared that electric car company Tesla invested a sum of $1.5 billion into Bitcoin in accordance with a new policy that lets the company acquire and hold digital assets at free will.
Following the announcement of the investment by Tesla, digital currencies in the crypto market rallied on the upside trend. Bitcoin then made it to a new all-time high afterward.
According to the company, it is expected that Bitcoin will be accepted as a payment option in the future. This stirred a lot of excitement in the crypto space, as many hopes for imminent adoption.
Gold bug and cryptocurrency critic Peter Schiff says Elon Musk used funds from his electric car company to buy Bitcoin and is pumping it to make profit.
In a tweet, Schiff said that Musk had used $1.5 billion of his company’s funds to buy Bitcoin, “long before his public pump”.
Also, Musk has also been tweeting about Dogecoin consistently, which Schiff says is also not different from Bitcoin and worthless just like any other cryptocurrency.
Elon Musk May Have Bought Dogecoin Before Now
Dogecoin has been pumping for days in a row with Elon Musk’s tweets. Specifically, when he said Dogecoin will become the currency of the earth. This has led Schiff to conclude that Elon Musk may have bought not just Bitcoin, but also Dogecoin which Musk has repeatedly said is his favorite cryptocurrency.
Schiff believes he had probably bought the meme coin before buying Bitcoin.
So long before his public pump, @elonmusk used #Tesla funds to put $1.5 billion into #Bitcoin. I wonder how much has already been dumped, or is being dumped now into the news? It's also likely that Tesla loaded up on #Dogecoin before he began pumping the superior crypto currency.
— Peter Schiff (@PeterSchiff) February 8, 2021
Schiff however says that neither Dogecoin nor any other cryptocurrency can be the currency of the earth. He argued that only gold has real value and if there is going to be a currency for the earth, it should be gold.
Peter Schiff has since said that Bitcoin is a bubble that will soon burst. Despite the fact that Bitcoin and most other cryptocurrencies have outperformed gold in the past few years, Schiff still believes that cryptocurrencies have no value at all and are not worthy investments. The $1.5 billion investment according to him is a pump and dump.
Bitcoin Continues To Rise Despite Criticisms
Bitcoin has been pumping since the year began. It got to the new all-time high of roughly $42,000 in January. Elon Musk’s investment is just a drop in the ocean as many other corporate investors already bought Bitcoin in 2020.
At this rate, Bitcoin is expected to reach over $300,000 by the end of 2021 as many analysts including JP Morgan have predicted. After hitting the new high of $45,000, the price has dropped to $43,800 according to Coin Market Cap. If investments such as Elon Musk’s continue to flow into Bitcoin, there may be potential for much higher levels in 2021.