SAN FRANCISCO: Billionaire Elon Musk said on Monday that bitcoin is “on the verge” of becoming more widely accepted among investors, as he expressed his support for the cryptocurrency in a chat on the social media app Clubhouse which has thousands listeners drew.
The comments follow the use of the #bitcoin tag on its Twitter profile on Friday, which increased the cryptocurrency by 14%.
Musk, CEO of Tesla Inc., is known for commenting on markets that move markets, and he acknowledged this during his debut in the invitational app Clubhouse.
“I’m a proponent of bitcoin,” he said.
“I was a little slow with the recording,” he said, adding that he should have bought it eight years ago.
“I think bitcoin is about to gain broad acceptance through conventional finance.”
Bitcoin last traded 3.7% at $ 34,390, after rising more than 300% in 2020.
At the extended discussion, Musk discussed, among other things, memes, Mars, his companies and vaccines. He also interviewed Vladimir Tenev, co-founder of online stockbroking app Robinhood, who is under fire for preventing retail investors from buying GameStop shares.
GameStop’s share has risen about 400% in the past week after retail investors banded together to buy shares in the US video game retailer, which caused hedge funds to scramble to cover losing bets.
Tenev said rumors about the market were untrue that Citadel Securities – the market-making arm of billionaire hedge fund manager Ken Griffin – had put Robinhood under pressure to block retail investors.
“This is just false,” Tenev said, adding that Robinhood had temporarily halted trading to meet regulatory capital requirements.
Musk released ‘Gamestonk !!’ last week tweeted, which many in the market saw as apparent support for small investors. “Stonks” is a tongue-in-cheek term for stocks commonly used on social media.