No doubt this is something Elon Musk and Tesla… they’re going to dive into the deep end of the pool on Bitcoin because they’re not just doing it from an investment perspective, but from a transaction perspective.
According to Ives, Tesla’s bitcoin strategy “is not just a fad” but rather “the beginning of a new age on the digital currency front.” The asset, which had an annual rise of more than 443 per cent, also crossed the $1 trillion mark in market capitalisation.
Bitcoin plummeted more than 10% to a price range of $51,993 on 22 February, which seems to be a price reversal after the $58,640 ATH rally on 21 February. Prior to this market movement, Elon Musk noted in a tweet that the price of the commodity was still high:
According to @elonmusk “Bitcoin is almost as BS as fiat money.” So Musk regards both #Bitcoin and fiat as BS. I agree, I just think Bitcoin, which is digital fiat, is even more BS than the paper fiat issued by central banks. #Gold is not BS. It’s real money and better than both!
— Peter Schiff (@PeterSchiff) February 19, 2021
Such market uncertainty does not change Musk’s mind about his company’s investment in BTC. As Dan Ives pointed out, Tesla actually made around $1 billion in paper income from its investment in Bitcoin. According to him, the firm was “on a trajectory to make more of its Bitcoin investments” than income from selling its electric vehicles “in all of 2020.”
In addition, Ives said that in terms of spending, 3 to 5 percent of public corporations will mirror Tesla and buy Bitcoin in the next 12 to 18 months. He quickly added that unless there is regulatory clarification in the crypto industry, no more than 5% of businesses can invest in the asset.
268 Interactions, 2 today