Elon Musk admits that bitcoin and ethereum 'seem high' in exchange with 'gold bug' Peter Schiff

• Elon Musk admitted that bitcoin and ethereum "seem high" in Twitter exchange with Peter Schiff.
• The Tesla CEO retorted Schiff's claim that Gold was a better asset allocation than crypto.
• On Friday night, bitcoin hit record highs pushing its market cap to more than $1 trillion.

Elon Musk isn't one to shy away from speaking his mind on Twitter.

In his latest social media comments, the Tesla chief admitted the price of bitcoin and ethereum "seem high" as the crypto assets hit record highs.

Last night, bitcoin smashed through the $55,000 level, bringing the crypto's market cap to more than $1 trillion. Its latest rally has largely been attributed to Tesla's $1.5 billion purchase revealed in an SEC filing on Feb 8, sending Bitcoin up 16% on the day.

Musk's comment was in reply to Peter Schiff, a well-known crypto skeptic and 'gold bug,' who claimed that gold was a better asset allocation than bitcoin or fiat currency.

Schiff's was quoting Musk's tweet that bitcoin was a "less dumb" version of cash.

"When fiat currency has negative real interest, only a fool wouldn't look elsewhere," Musk tweeted on February 19. "Bitcoin is almost as bs as fiat money. The key word is 'almost.'"

But Musk responded to the veteran stockbroker claiming that: "An email saying you have gold is not the same as having gold. You might as well have crypto. Money is just data that allows us to avoid the inconvenience of barter."

An hour later, the Musk followed up with a post saying: "that said, BTC & ETH do seem high lol."

Bitcoin is now trading 55,563.02, according to exchange site Coinbase. Ethereum has gained 174.20% year-to-date, now trading at $2001.77.