Bitcoin at new high of $53,263 after Elon Musk defends Tesla's investment

Bitcoin got another leg-up on Friday after billionaire Elon Musk defended the investment by his electric vehicle company Tesla in the popular cryptocurrency. After Musk's tweet, where he called Bitcoin "simply a less dumb form of liquidity than cash", the digital currency raced to a new high of $53,263.

"Tesla's action is not directly reflective of my opinion. Having some Bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P500 company," Musk tweeted in response to a tweet on sub-zero returns on cash caused by negative-yielding debt.

"To be clear, I am *not* an investor, I am an engineer. I don't even own any publicly traded stock besides Tesla. However, when fiat currency has negative real interest, only a fool wouldn't look elsewhere. Bitcoin is almost as bs as fiat money. The key word is 'almost," he further added.

Bitcoin was trading steady just below the earlier record mark of $51,284. After Musk's endorsement, it surged to its new record high of $53,263 at 9:55 am on Friday in New York. The cryprocurrency has risen 10 per cent just this week.

After a dream run last year, rising 313 per cent, Bitcoin was further to new highs after Tesla's annual report disclosed that the company had invested $1.5 billion in the cryptocurrency. The electric vehicle manufacturer also said that it plans to accept Bitcoin for its cars and services. This saw the digital currency jump to $50,000 for the first time.

Musk has been vocal about Bitcoin and Dogecoin - a cheekish entrant to the cryptocurrency market. His memes and jokes have only flared their popularity, even as countries like India remain apprehensive of the decentralised currency.

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