“Tesla will earn more from Bitcoin than vehicles” – digital currencies

Two weeks ago we reported here that Elon Musk’s Tesla (TSLA) has acquired Bitcoin worth $ 1.5 billion and will allow its customers to pay in the popular digital currency. This past weekend, Daniel Ives of Woodbush, one of Wall Street’s esteemed technology and automotive analysts, said the company would benefit more from this investment than selling cars and that this success would lead more companies to invest in Bitcoin.

By the way, according to the Kwindesk website, which monitors the digital currency market, since the beginning of the year the price of Bitcoin has risen by no less than 91%, from a level of $ 29,111 per bit on January 1, compared to a price of $ 55,587 per bit as of this writing.

In a report, Tesla announced that it had acquired Bitcoin in January, but did not report an exact date that would allow. Although Ives did not explain how he arrived at the calculation, on January 31, the price of Bitcoin was $ 34,793 per bit and on the day the study was published, that is, Saturday, the price was $ 57,487 per bit. This is an increase of 65% more or less and a return on paper of $ 975 million.

“The company is on a path where it will earn more from its investments in Bitcoin than it has earned from electric vehicle sales in all of 2020,” Ives estimated. “So while this is an investment that is a ‘side show’, it was clearly a good initial investment decision, which we expect to have an impact on more companies in the next 12 to 18 months,” he added.

Over the weekend Bitcoin broke a new record and became a commodity or investment – depending on how you look at it – at a market value of a trillion dollars. In general, blockchain-based currencies have rallied nicely over the past year in light of the weakening dollar. The main reason for the increase is that currencies are becoming more popular for institutional investors and the world’s largest investment banks.

Absurdly, one of the people who has contributed the most to the rise of virtual currencies this year, is none other than Musk himself and the market criticizes him for it. 3 weeks ago – probably more or less while Tesla bought the Beat – Musk just changed the caption in bio on Twitter to the word “Bitcoin” and the currency flew by 20%.

Over the weekend, Musk tried to underestimate his value, regarding his posts on the social network, but continued his attacks on fiat money, i.e. cash. “Let it be clear, I’m not an investor. I’m an engineer. I do not even own non – Tesla shares,” Musk tweeted. “At the same time, when fiat money has a negative real interest rate, only a fool would not look elsewhere. Bitcoin is bullshit almost like fiat money. The key word here is ‘almost’,” he concluded.

Musk’s tweet:

To be clear, I am * not * an investor, I am an engineer. I do not even own any publicly traded stock besides Tesla.

However, when fiat currency has negative real interest, only a fool would not look elsewhere.

Bitcoin is almost as bs as fiat money. The key word is “almost”.

– Elon Musk (@elonmusk) February 19, 2021
Let’s say that his argument is not particularly strong, when it is not inconceivable that in the future the US law enforcement agencies will investigate him on suspicion of market manipulations, as has already happened in the past.