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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

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... :)

4 years ago in Project HOPE by
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     4 years ago 

    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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       4 years ago 

      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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       4 years ago 

      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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         4 years ago 

        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! :)