Elon Musk was asked by the host of his most recent interview with bloomberg about the “carnage” on the cryptocurrency market and whether people should still invest in decentralised assets, as the market experienced last month, and his response was not “sharp” for the industry.
Musk claimed that he never advised people to invest in cryptocurrencies and that he only bought bitcoin as a personal investment, while advising others to avoid such risky assets.
The entrepreneur also clarified that Tesla and SpaceX’s bitcoin holdings are only a small portion of their total assets on their balance sheets, and that they are not exposing the companies to significant risks when purchasing volatile digital assets. The importance of risk management could not be overstated.
Musk also stated that he will continue to support Dogecoin because he believes in the project’s decentralised nature and use as a payment tool. Despite the asset’s 50% drop in the last 45 days and a drop that is even greater than ATH, Tesla still accepts DOGE payments for its goods.
Most institutional investors closed their positions and exited the digital asset market after the crypto market crashed by more than 30%. Large businesses and corporations, on the other hand, have largely abandoned support for crypto payments until the market returns to normal.
While bitcoin lost a significant amount of value over the weekend, the market did not expect it to fall below the 2017 ATH of $19,000, resulting in a massive $7 billion loss.