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RE: ELON MUSK AND TESLA - the blessing of a threat for BITCOIN and crypto space?

in Project HOPE • 4 years ago

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.

4 years ago in Project HOPE by
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     4 years ago 

    BIG THX for your amazing comment @awah

    First, Elon Musk obviously believes in crypto and he understands the technology and the markets.

    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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