INTRODUCTION
Less than 3 weeks ago, I posted an article called "ELON MUSK AND BITCOIN - isn't it worrying to see how one person can influence an entire industry with a single tweet?".
This particular publication attracted quite a number of interesting and valuable comments, and reading them only strengthened my belief that most people out there see ELON MUSK as a blessing for cryptocurrencies. They see him as a successful entrepreneur with an enormous reach (almost 48million followers on Twitter alone) who is bringing more attention and trust towards bitcoin and crypto space in general.
I've read so many publications praising him and his work. And somehow I cannot stop being concerned about the fact that decentralized assets (crypto) are relying so heavily on one entity. After all, Tesla and Elon Musk are considered as "one".
Today I would like to share some of those concerns with you, dear readers. And I would like to find out how many of you see things the way I do.
MAIN PROBLEM - TESLA
Only several days ago, the price of BITCOIN increased rapidly after news that TESLA bought 1.5$ billion worth of bitcoin. They want to store it as their reserve funds and hedge against inflation, which is definitely a great idea. One that many other corporations will hopefully follow sooner than later.
This news sounds brilliant and it created an enormous wave of optimism within the crypto space. Markets reacted very well and BITCOIN recently went above 50k USD (new all-time high).
So what's the problem - you may ask?
Well. Let's put it straight: what will happen if Tesla would for some reason start doing poorly? And there are so many reasons for them to get in trouble. PE ratio (price to earnings) indication is at INSANE LEVELS and it's hard to disagree with those who claim that TESLA is overvalued.
My strong impression is that currently, TESLA is one of the largest bubbles out there. And I'm concerned that this bubble will burst.
It's hard to predict what would happen in such a scenario. My fair assumption is that they would decide to sell off a large part of those BTC (especially since they made huge profits already) to ensure buy-backs to their own stocks. After all, TESLA will most likely do their best to avoid their own stocks from crashing down.
So in a way, we're witnessing the growth of the biggest bubble. The company which doesn't really deliver much. With market cap out of this world. With stocks so high mostly because of one person (Elon Musk), who knows how to attract investors and believers.
I see so many red flags and I wonder how many of you see them too.
BOTTOM LINE
My goal is not to spread fear. I surely like to hear opinions coming from my readers.
However, mainly the reason behind this publication is to point out that all of us (who invested in crypto) should pay close attention to the situation around Tesla. Because so much depends on it. And being able to foresee any potential risk of Tesla getting into any sort of trouble (which could result in their stock prices plummeting) can be a great indicator of upcoming bitcoin price action.
RESTEEM and SHARE YOUR VIEW
I would obviously appreciate every single resteem. And mostly I would be glad to read some interesting and valuable comments. So please, share your thoughts with me and rest reassured, that I check your comment. I read them all :)
Yours, @crypto.piotr
@project.hope founder
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Hello
You raise a very good point and a very reasonable concern. I think that the propping up of high valuations will likely continue, and hopefully when the Tesla bubble bursts, there will be so many other companies involved, that if he sells his Bitcoin it will be bought quickly by stronger hands.
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Thanks for your comment @shortsegments
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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You might be right about the scenario you portray, but the truth is, lots of other businesses have also bought Bitcoin with lots of money, and most likely... they will still keep on buying, and new companies buying.
But, there is one threat, and that is if Tesla would start to sell off, and if later Elon Musk would start to tweet about it. One tweet from Elon saying that he doesn't trust Bitocin anymore, or that it is overvalued, and I am sure we will see a market drop in price for Bitcoin around 20% at once. And if it comes as a wave, it will ripple the prices even more.
But, that is part of the fun and the beauty of the game... :)
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hi @unbiasedwriter
Thanks for sharing your thoughts with me.
You've mentioned that " lots of other businesses have also bought Bitcoin with lots of money". The think is that I cannot come up with even one company name which would buy as much as Tesla did. Even Microstrategy didn't get that much.
That would make Tesla the biggest BTC holder I know about. Apparently they purchased most of their Bitcoin around price of 30-31k. That would be around 48-50 thousands of BTC. If for any reason they would be forced to sell off even small part of it (to ensure their stock market price stability in case of their stock price bubble popping out) then we could see quite a solid price drop.
But the most important and devastating would be publicity around it. In my opinion, if Tesla stock market would burst then we shall be prepared for price of bitcoin to crash soon after. And for that reason Tesla matters more than any other "silent" "whale investor".
Wouldn't you agree on tha?
Cheers, Piotr
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Of course, Tesla matters a lot, and so do the words of Elon Musk! But, I believe the market is also capable of keeping up without him, and if the market would collapse because of eventual action from Elon Musk/Tesla, then I would call it a healthy collapse :)
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Thanks for your comment @unbiasedwriter
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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Of course, often we see red days across the entire market correlate, but of course, Bitcoin and Tesla are closer related now than just a Netflix or an Apple stock... Also, your recent post was interesting, will try to check out the video as well soon! :)
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Hi @crypto.piotr
It's hard not to feel concerned knowing that the decentralization that we've always been proud of is now pegged with only one entity.
However, I still think that Bitcoin is far bigger than Tesla or any other company. Even if Tesla faces difficulties in the future, this will probably affect Bitcoin in the short term only. But in the long term (and this is what I really care about), I believe that Bitcoin will continue to survive and thrive.
Thank you for sharing :))
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It is my concern too, since the tesla is a bubble at the moment, on the other hand, whoever bet against it lost 40 billion dollars just last year.
However, I believe that if Tesla goes bust, nothing will happen, bitcoin is bitcoin a coin made to be used, and no reserve of value as they are currently doing.
Perhaps we are worrying for nothing.
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Elon musk revolutionised the tech field and thriving innovations borned from his contribution. We see electric car company getting tremendous attention from developed billionaires .They are also trying to democratise their cars all around the hemisphere to raise popularity and acceptance in global market.Starting from North America to heart of Asian economic hotspot ,indo pacific region ,far east zone and EU market capture are the preferences. Undoubtedly, its a increasing company having larger potential in stock market more likely to produce creditable interest in Btc market ..that is predictable by learning from the following excerpt. ...
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I firmly believe that these are manipulations on the part of this great bubble that, as you say, is being created.And I am very convinced that within 7 days from today (next Sunday), the price of bitcoin will fall due to some movement of this big bubble. I am not an expert in the field but my intuition tells me that the movement is going towards that place. Even several friends who are in the world of trading think the same as me.
And I have the opinion that it does not seem healthy to me that the price of a cryptocurrency is centralized, and clearly that is what is happening.
Very good your reflections and I only hope that people are more rational and realize this.
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Thanks for your comment @reinaldoverdu
I feel very same way.
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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Good morning @ crypto.piotr
A very interesting article, especially for those of us who follow the rise and fall of cryptocurrencies with difficulty.
The importance of Elon Musk's opinion needs to be followed, but I perceive it as a risk and remember a maxim about prudence for investors: do not invest everything in the same object
Buen día @crypto.piotr
Un artículo muy interesante, especialmente para quienes seguimos conn dificultad el sube y baja de las cryptomonedas.
La importancia de la opinión de Elon Musk es necesario seguirla, pero la percibo como un riesgo y recuerdo una máxima sobre la prudencia para inversores: no invertir todo en el mismo objeto
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Hi @crypto.piotr – very well laid out here. I share your concern but not with Tesla. At the end of the day Tesla is a real company with a real product that you can buy. It will thrive or not based on the ingenuity they continue to propel via their vehicles and their other product lines. We will learn more about their viability as the subsidies for EV's dies down. Observationally I've seen more Tesla's on the road this week than I can remember at one time. Bodes well for their continued success. Their stake in BTC is a small piece of their available cash.
I do however worry about companies that have taken a huge stake in BTC with very large sums of their available cash. Taking such a large position with a speculative asset is as dangerous for a company as it is for an individual. The difference being an individual is not responsible to shareholders. This increases the volatility ten-fold thus increasing the risk to faulty decision-making. This volatility could lead to a burst of the "bubble" in cryptos because of the need for the cash by the company.
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Dear @tsharpaphi
I appreciate you dropping by and sharing your thoughts with me on this particular subject.
It is real company, but without real product. And definetly without much profits coming from their sale. I personally consider Tesla one of the biggest bubble out there.
I wasn't aware of that. Are you sure that TESLA is "sitting" on pile of FIAT currency?
ps.
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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This headline is from The NY Times 27JAN2021: "Tesla Has First Profitable Year, but Competition Is Growing". In the article: "The company reported revenue of $10.7 billion in the fourth quarter, up 45.5 percent from the year-ago period. Its' full year revenue climbed to $31.5 billion, up from $24.6 billion in 2019."
Their BTC stake is just under 8% of their cash. They have been profitable now for about 5 quarters in a row. Will it be sustainable as the subsidies melt away? That is the question that we will have to wait and see.
Tesla fell along with the rest of the market. Technology stocks have taken a beating the past few days in the US market.
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thanks for being so responsive @tsharpaphi
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I just made a post now, I did understand how to do it before.
https://steemit.com/hive-175254/@cryptocheta/some-swedish-regulators-warn-consumers-against-cryptocurrency-as-market-begins-to-tumble-new
I also enjoyed your post too
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Hi @crypto.piotr - Sorry for my late reply, I nearly missed your post (well you did leave me off your CC list ;) )
I understand your argument and there is of course a big risk that Tesla could soon dump their Bitcoin and we could have a big dump in price as a result. However, I have a few points that may balance the argument slightly.
First, Elon Musk obviously believes in crypto and he understands the technology and the markets. He knows the effect he can have so is unlikely to drop $1.5tn on to exchange in one hit. Actually, he is more likely to do a private exchange. As such, it is the news that has more impact than the trade. Will we ever know when he sells? He may have sold some already - he would have taken a handsome profit.
Secondly, market volumes are relatively high. $1.5t isn't as big as it would have been. Daily volumes can touch that anyway.
Thirdly, it is not just Tesla but other big companies are getting into cyrpto in a big way. I think the Visa and Mastercard news is almost even bigger as it shows that cyrpto is no longer a niche market for a bunch of geeks (and yes, Elon is a geek) but it now starts becoming mainstream. We need mainstream to not only push the price up but also to eventually stabilise the price.
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BIG THX for your amazing comment @awah
I'm not sure if you understood my point. What if TESLA bubble would burst. Obviously for TESLA their own shares (assets) are the most important. So they would do anything to limit that damage. And I would expect them selling off part of their BTC (reserves) to carry on with buy-backs.
So it doesn't matter much if Elon/Tesla do understand technology. It's all about protecting what has biggest value. And for TESLA their stock market price matters a lot.
Either way, I wanted to bring some attention towards it as I consider it important to understand strong relation between BTC and Tesla. Something we didn't have to worry about in the past.
Imagine FUD and wave of panic if mass media would bombard everyone with information, that TESLA is selling their BTC to rescue their own stocks. And this is real possible scenario.
ps.
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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Tesla owns a relatively competitive amount of bitcoin but they are increasingly getting surrounded by like minded deep pocketed investors, hedge funds, insurance companies, corporations putting bitcoin on their balance sheets and now recently Banks. Don't kill the messenger. Elon Musk knows the media and knows how to utilize it.
I think it's unfair to state Tesla hasn't much to offer. They're eons ahead of the other space race contenders, Richard Branson and Jeff Bezos. They're far from just a car company and the company is innovating and not copying.
Part of the reason TSLA is priced as it is, I believe is partially due to all of the short sellers that attacked the company and tried putting it to death getting pounded by what I believe was the start of wallstreetbets.
The dollar is garbage so maybe TSLA is at fair value. Even to the contrary if the market ever seeks fair value TSLA along with every other stock will likely follow the market because if this happens there will likely be a credit crisis and frankly all hell will break loose in the entire financial sector only leaving bitcoin as the only sound money to turn to causing it's scarcity to compound.
The way the entire world is mired in compounded derivative debt I believe is much more concerning than any other factor I can think of .
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BIG THX for your amazing comment @bitshares101
I was wondering: is there any way I could "connect" with you? Do you use Discord by any chance? You surely have serious knowledge and I would like to get to know you closer, and perhaps encourage to publish within our Project.hope community
ps.
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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There is definitely a correlation while other factors like the entire tech sector making a correction, btc needing a breather after hitting 58k and Janet Yellen spewing negative remarks all working in tangent fortifying the recent event.
Having such extremely highly leveraged markets btc/crypto seem to go in both directions in a far from orderly manner. With the advent of 100x leverage, I constantly wonder how many times traders can get their entire position wiped out before they stop recklessly going for broke and getting recked, and perhaps the answer is never when you consider all of the casinos that have popped up through the years yet hardly putting a dent in the popularity of Las Vegas.
With keeping an eye on the aggressively rising bond market it's best to be said that trouble is a brewing and there will likely be some radically strong changes coming to the future of the market in general.
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Again, thanks for dropping by @bitshares101
The answer surely is NEVER. Greed is one thing. Not learning from mistakes is another one. And the fact that those who will burn themselfs now will be replaced with new fresh-blood in next cycle in few years - that's another factor.
People love idea of following "get rich scheme". Greed, greed and again greed. And lack of patience.
Cheers, Piotr
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I completely agree with your opinion @crypto.piotr
The Tesla bubble will burst at some point, and what I want to see is if the rest of that “category” or ETF (for electric vehicles) will drop as well or if one of Tesla’s direct competitors will grab the value (Li, Xpeng, etc). Now even though he didnt actually say it (for obvious reasons) even if the Tesla shares fall, he disn just hedge inflation with the BTC, but also that same bubble burst - and with a good write off with the stock decrement, and a taxation rate that wont “directly hit in a major way” (whatsoever) with the BTC increment (if they decide to sell and swing the BTC) their liquid asset increment portion will balance out the cashflow for the company regardless of any stock decrement. The correlation you in fact mention between Tesla and BTC is more profound that is noticeable and here is my rationale - that guru aura that EM has earned, he used it to translate what happened with Teslas stock over the last 12 months, to BTC, and it will be noticeably interesting if other companies (especially cash cows) follow his leas to hedge not only inflation but their own companies BETA.
Its just an opinion ( I apologize for my poor english explanation skills haha)
Good post @crypto.piotr
Thanks
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Dear @davidgutre
I appreciate you dropping by and sharing your thoughts with me on this particular subject.
ps.
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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Hi @crypto.piotr
It is bitter but truth that we must accept. I want to say just simple thing to all investors who are crazily investing without seeing the situation they should invest only what they can afford to lose. Eye opening publication .
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Let us understand it this way, a contrary view:
If it was never ours, why are we concerned about it?
If Bitcoin and Crypto truly have value, It is a good thing that due to Elon Musk people started investing in Bitcoin and also started using crypto space.
The concern is: what if tomorrow Tesla or Elon musk fails?
If Bitcoin or crypto space truly has value, those people who came through tesla will not withdraw their investments or leave crypto space. And if they leave, they were never interested in it at the first pace. We must focus on the true and genuine value which develops over time and not on these small antics.
It is not about the bubble of Tesla or Elon rather it is about the bubble of Bitcoin & crypto which has been created due to these big sudden investments. If people leaves and the price drops, it was an illusion that was created Elon. If we are clear about what value it holds, we must care less about these sudden pumps.
Thanks!
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Dear @knowledgefruit
I appreciate you dropping by and sharing your thoughts with me on this particular subject.
I'm not sure if you understood my point. What if TESLA bubble would burst. Obviously for TESLA their own shares (assets) are the most important. So they would do anything to limit that damage. And I would expect them selling off part of their BTC (reserves) to carry on with buy-backs.
If we would focus only on those investors, then market would crypto shrink to super small size. Majority of those who invested are here because of potential of making profits. Not for any other reason. That's at least my impression so far.
ps.
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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Tesla has been overvalued for so long but because money is so cheap now, Elon's followers are able to prop it up almost indefinitely, it seems.
I think the Tesla bubble will only pop if there's some major bad publicity or if the cost of money goes up (e.g. interest rates).
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Hello @crypto.piotr friend,
Without the intention of defending the "movement" of E. Musk and only based on the records and news on the subject, I find a very curious point:
Shares of "Tesla Motors" rose sharply during the pandemic in comparison to years earlier, and it seems to me that E.Musk is playing a "rough game" by buying large amounts of BTC that are possibly being acquired with shares of Tesla (is what I think), and what you are acquiring is "a volatile phenomenon" because crypto assets are seen in some financial sectors as "smoke in a bottle", so there will always be the possibility that "Tesla" will be seen in serious problems in the event that "someone uncovers the bottle" or the price of BTC plummets unexpectedly.
See you soon
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Dear @tocho2
I appreciate you dropping by and sharing your thoughts with me on this particular subject.
ps.
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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Hello
There is a clear relationship, however it is incomprehensible from the point that Musk is not the only possessor of large sums of BTC, so I wonder: why this absurd trend? How much power must this individual have to achieve this small chaos?
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Hello @crypto.piotr
Wow, this really is an interesting topic. It always seemed to me that Tesla is overrated. I understand that the production of eco-friendly cars might be facing the future, and that's why it becomes more important, however, that it has such a capitalization seems to me somewhat exaggerated, but that's the way the market is.
I also believe that there is a greater product impulse in Elon's other companies, which could generate confidence in the majority because they see in him an example that everything will be fine.
As for BTC, yes, it worries, it must have something prepared in the future for those BTC and it is not going to be losing money.
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Dear @josevas217
I'm glad to hear that you consider this to be an interesting topic :)
I appreciate you dropping by and sharing your thoughts with me on this particular subject.
ps.
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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Dear @crypto.piotr,
Whilst Elon Musk maybe one of the largest investors in terms of money invested, the number of BTC he is holding is about 50K only. There are others who have invested less than $1.5billion but holding more than 50K BTC. These are early investors whose identities are not known publicly. Many of the High Net Worth Individuals who have invested in BTC, do not go around publishing their wealth openly like Elon Musk.
Chinese investors are generally very secretive about their wealth. It is a cultural thing for them not to show off their wealth. We don't really know how many Chinese (both mainland and overseas) own BTC and the amount of BTC they own.
Among the known ones, we know Tyler and Cameron Winklevoss is reputed to own about 1% of the BTC in circulation. That is almost 200,000 (about 4 time that of Elon Musk). See 5 of the World's Top Bitcoin Millionaires
Then we have Grayscale which manages the Bitcoin Investment Trust. They had more than $1 billion invested cryptocurrencies (mainly in BTC) when the price of BTC was less than $6.5k. That works out to be about 150k BTC, not taking into account subsequent investments by Grayscale. That fund should now be worth more than $7billion. See Biggest Bitcoin Investment Trust Hits Massive $1 Billion Year
The latest is Blackrock (the largest asset manager in the world) is already dabbling in BTC. See BlackRock’s Rick Rieder says the world’s largest asset manager has ‘started to dabble’ in bitcoin
I have not even touched on the Bitcoin ETFs!
The institutional investors are just beginning to take notice. More is yet to come.
Finally, when the market matures, Elon Musk's influence over the crypto market will not matter much.
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Dear @devann
I appreciate you dropping by and sharing your thoughts with me on this particular subject.
My impression was always different. That chinese loove to show off their wealth. Years of living around Chinese people made me think that way. Conversations are so often about money, money and again money. Those people are actually showing off more than I ever experienced during my travel across the globe.
But then, perhaps really rich Chinese are different. I can't tell.
ps.
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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Hello friend, your analysis has a lot of logic and possibly what you mention can happen, it is a very high investment by the company that today translates into the rising price of bitcoin, but in the future may bring not so favorable effect if the company is in certain problems that lead them to trade exuberant amounts of bitcoin, let's hope that the future holds for Tesla.
Thank you for your valuable opinion, have a great weekend.
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Dear @amestyj
I appreciate you dropping by and sharing your thoughts with me on this particular subject.
ps.
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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You are right to be concerned my friend, it is certainly a difficult scenario to predict what may happen with Tesla in the future, but I think the biggest threat to BTC is not that Tesla will sell the acquired cryptoassets but that Elon will start tweeting that he is no longer a supporter of cryptocurrencies, because of the influence that as a figurehead he has exerted on BTC.
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Thanks for your comment @emiliomoron
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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I think that at a certain moment there will be a crash in the price of BTC, because certainly if Tesla's shares crash, most likely Elon Musk will sell a large part of BTC to recover his shares, and not only that any other BTC investor may do the same and this would result in low BTC prices, because to what people who invested and buy BTC below 30 thousand dollars when they see the crash will withdraw also, what I really do not know if suddenly there is a floor where BTC prices will not be seen again below 20 thousand dollars, the other thing I wonder is how it will impact these BTC prices in cryptomoney like steem and hive?
Greetings my friend and thank you for sharing your views in the financial arena.
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Thanks for your comment @carlos84
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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It's not FUD, its just logical thinking. His influence centralises Bitcoin, whether we like it or not. The fact that he can have such a far reaching effect is enough indication that we should be worried.
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I think that Elon Musk is a visionary. Tesla is more than an Electric Car company. ... especially now that it has 1.5 Billion worth of Bitcoin on its Balance Sheet.
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Elon Musk is just playing his big game ... The only bad thing is that we all follow this game ... From shopping, Elon won everything! Tesla? It is overestimated due to the lack of normal competition ... And the market is heading towards the fact that soon we will abandon oil and switch to alternative sources
It is not Elon Musk that affects the crypto market, it is we help Tesla to burst faster)
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Hello @cryto.piotr
I am very disturbed by the idea that the exponential growth of BTC and the crypto market depends on one person and the situation of a company like "Tesla".
The scenario is really quite unpredictable and lends itself to any kind of speculation because of the uncertainty.
Happy weekend.
Best regards.
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that's an interesting scenario although i haven't done any research to determine whether tesla is a bubble or not. On the other hand though what i fear is that because btc and crypto have so much attention now new players are entering the game.
new players like funds and governments which have both money and power. I fear we are gonna see new regulations and laws that are not friendly to the average users. We already saw a ban in Nigeria for example.
I have made a more detailed post which you can find below. It's a month's old so no promotion :P
https://steemit.com/hive-175254/@filotasriza3/banks-and-funds-wanna-steal-your-bitcoin
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Dear @filotasriza3
I appreciate you dropping by and sharing your thoughts with me on this particular subject.
ps.
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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I never imagined this situation that you just raise but without deny the fact, that is what is very possible to happen.
Another angle I will like to look at it is that if the action of Tesla already bring in more investors then if Tesla decide to sell large part of their Bitcoin which they will still do as time goes on, it will definitely affect the price but the advantage is that many other company are already involves. So the only prayer will can hope is that they (other companies-- investor) too should not follow the foot step of Tesla because if they do, then it will be bad for the crypto industry and might take time for crypto industry to recover.
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Dear @great-a
I appreciate you dropping by and sharing your thoughts with me on this particular subject.
ps.
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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Hello @crypto.piotr
You are really right about Elon Musk having a great impact on the price of Bitcoin due to his influence and we are also aware that Tesla bought 1.5 million USD worth of BTC too.
From my point of view, I think this act has also created some sort of awareness or publicity about cryptos making people and other top companies adopting them too.
There's also a high probability that Elon Musk create his own cryptocurrency token too as time goes on and this will definitely lead to more influential people and companies creating their tokens too just like Akon also created Akoin.
Thanks for sharing this great post with love from @hardaeborla and I hope you have a great day ahead 💕❤️💓
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Thanks for your comment @hardaeborla
It's hard not to agree with you on that particular point.
ps.
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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Yeah! You're really right about this
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As per my thoughts , the news is just a mind distraction created by tesla , as I have recently read their is some safety issues in tesla in China so to cover up that news this news has been generated. Nothing else it's a bubble and will bust soon.
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@crypto.piotr
There seems to be some attempt at market manipulation here. Musk seems to use the tactic of market manipulation whenever he wants to take advantage of his board or the government. I agree with you. There appears to be a great deal of overvaluation.
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Thanks for dropping by @rasbas
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A couple of days ago I commented in another article that I was concerned that Tesla was buying large amounts of BTC as this is a company and as such only seeks profits, there are many scenarios one of them is that the company decides to sell all its BTC to capitalize on their profits and thus balance their losses against their other companies, another scenario is that everything is a business strategy to sell more cars taking advantage of the publicity of BTC, at this time whatever the motives of this company as small investors we must be vigilant and not get carried away by the excitement of a rising market that although it is very good to invest the possibility of a price drop as in 2017 is becoming more real, be prudent and be attentive to market changes to have an exit at the time of a market crash are actions to consider at this time.
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Thanks for your comment @trabajosdelsiglo
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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Hi dear buddy @crypto.piotr
Elon Musk is much more than Tesla, there is also his space X, neuralink and what for me will be the most profitable company in the world starlink, so I don't see how this man is going to need to sell the BTC, if we only analyze Tesla I understand that is overvalued, but with semi trucks that company will make a lot of money. People also buy many Tesla stocks and that generates liquidity so I don't see that it is going to sell those BTC in the medium term and really never, I think it is a company that every time is going to have more money.
Now if the bubble with Elon happened it would be a disgrace for the crypto world and for all its investors, I hope it doesn't happen
God bless you
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Thanks for your comment @ramsesuchiha
Could be. But right now (Elon Musk, Tesla and Bitcoin) seem to be riding in the same train.
Perhaps you're right. But what if TESLA stocks would crash down and tesla would decide to maintain their stock price at all cost by dumping some of their reserves (in BTC) to deliver buy-backs to their own assets?
We better be ready and be aware of this possibility.
ps.
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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Hi dear buddy @crypto.piotr
That would be a master move worthy of Elon Musk
You were right buddy, Tesla and BTC are on the same train, I hope they don't collapse and that BTC prices remain.
All your posts are great I always enjoy them a lot, I'm glad that now you write more often
Thank's for all dear angel and god bless you for your lovely work
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I've never seen Tesla's investment in bitcoin as a really positive news. While it's good publicity, it has every potential to backfire. Not sure how bad it will be, but if it ever backfires, it wouldn't look so good. But I remain bullish for now.
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A very interesting debate this could be. I would even love to pen a whole post on this. While the FOMO around Bitcoin and DOGE due to Elon Musk's tweets and supposed involvement, it could create the fear that people are buying not out of trust of the value of product but to participate in the anticipate bull due to Elon''s interference.
This action has a benefit in that if at all Elon is buying into BTc at around $40k then he'll not want to lose on his investment, thus, BTC can only move forward. On the other hand, some alts like DOGE could dwindle at some point since it's not back by any tangible product.
On the other hand, I can't really predict what could happen to Tesla. I've not been following much of the news around the product.
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Thanks for your comment @uyobong
"could be"... only could be? :P I think it already is :)
ps.
I found it interesting that just few days after this post, shares of Tesla on stock market crashed down rapidly and BTC crashed as well at the very same moment.
It's hard not to see huge corelation between those two. Wouldn't you agree?
ps. you may also find my recent post interesting :).
Cheers, Piotr
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I personally think Tesla knows what he his doing, to my own opinion I think the guy is trying to influence much people to push his own market.
Tesla investing 1.5 billon on BTC am pretty sure he did that to make more money. I will advice we should app keep our finger cross and to all the investors out there my advice to you all is to invest only what you can afford to lose. Please don't borrow to invest.
Thank you @crypto.piotr
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I agree with your analysis. I actually also think that Tesla is overvalued and people are buying their stocks because of Elon and not the company is quite a hint that it might be a bubble.
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@tipu curate 3
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Upvoted 👌 (Mana: 0/3) Passive income - now with TRON rewards! || Compare APR
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Hello
You raise a very good point and a very reasonable concern. I think that the propping up of high valuations will likely continue, and hopefully when the Tesla bubble bursts, there will be so many other companies involved, that if he sells his Bitcoin it will be bought quickly by stronger hands.
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