Elon Musk Isn't So Sure About Dogecoin: "Invest With Caution"

"There's a good chance that crypto is the future currency of Earth."

No Other Superstar

Tesla CEO Elon Musk has been a major booster of the cryptocurrency Dogecoin, posting memes that have driven its value up sharply this year.

Now, though, he's changing his tune — cautioning that people should be cautious with how they invest.

"Cryptocurrency is promising, but please invest with caution," the billionaire wrote in a new tweet, with a link to a February TMZ video in which he tells paparazzi about his views on cryptocurrency investing.

 

Big Night

Musk's tweet came just days before his appearance on "Saturday Night Live" later this week. Interspersed with his Dogecoin boosterism, he's been sounding a note of caution about the cryptocurrency for some time.

"I think it should be the will of the people, you know," Musk told the paparazzi in the video he linked, when asked if Dogecoin is "the next currency for the world."

Musk also said that Dogecoin has a limited value since there is an unlimited supply of it — unlike Bitcoin, which has an artificially induced scarcity with a set limit.

"The point was that Dogecoin was invented as a joke, as essentially to make fun of cryptocurrency," he added, "and that's why... I think there's an argument that the most entertaining outcome is the most like 'what would be the most ironic outcome?'"

The joke currency hit record "highs" earlier this week — arguably in large part due to Musk's ongoing endorsement of the currency — trading at over $0.50 for a market cap of $69 billion.

To the Moon

The CEO also gave out some arguably sound advice in the February video.

"People should not invest their life savings in cryptocurrency, to be clear," he said. "I think that's unwise."

"If you want to speculate, and, I don't know, have some fun, I mean, there's a good chance that crypto is the future currency of Earth," he said.

But "it should be considered speculation at this point," he added, "so don't go too far on the crypto speculation front."

Not all is lost of Musk's love for Dogecoin, though.

"To the Moon," the CEO joked at the end of the clip, referring to a popular Dogecoin meme.

Updated to reflect that Musk's tweet was new, but that the video he linked to was uploaded in February.

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