Musk needs Bitcoin

Tesla founder Elon Musk (Elon Musk) once again “updated” his views on Bitcoin. At the “The B Word” Bitcoin Conference held on July 21, he boasted of Bitcoin support The author also stated that Tesla may again accept Bitcoin as a payment.

And just two months ago, he staged a scene of defying Bitcoin. Not only pointed out that Bitcoin is “not environmentally friendly,” but also accused Bitcoin of being controlled by a few mining companies. It didn’t take long for Bitcoin to fall from a high point, and the price was cut in half.

Why did Musk change his mind at this time? You know, Tesla’s second quarter earnings report will be announced soon. According to estimates on the “Fortune” website, due to the continuous decline in the price of Bitcoin, Tesla’s return on investing in Bitcoin has turned from a floating profit of US$1.45 billion to a loss at one time. Since the beginning of this year, Tesla’s stock price has continued to fall. If it breaks down again in the crypto asset market, it will undoubtedly make the situation worse.

After Musk’s supportive remarks, Bitcoin immediately turned upwards, rushing from below $30,000 to more than $32,000. Although people do not want to admit it, his influence on this market exists objectively.

In fact, influence has always been regarded by the outside world as Musk’s greatest invisible wealth, which can be seen from Tesla’s few advertisements but a household name. From the creation of SpaceX to promote the construction of space civilization, to the creation of the era of electric vehicles, Musk was given the title of “Silicon Valley Iron Man”, and his influence continued to give him the energy to realize his ambitions.

However, the storyline of going to space and electric vehicles is no longer novel, and Musk has landed on the emerging hot land of crypto assets at the right time. Looking back at his swaying attitude towards Bitcoin in the past few months, no matter how crazy and absurd the spectators feel, Musk still repeatedly appeared in the “headlines” of the currency circle and eventually became an opinion leader in this field.

It is not so much that Bitcoin needs Musk to wave the flag, but it is better to say that Musk needs Bitcoin. He not only needs to reap the return on investment from the rise of Bitcoin, but also needs to continue to add value to his personal influence in this cutting-edge world. It’s just that when he returns as a “supporter”, people cannot predict whether he will smash his chips into the market when Bitcoin is high.

Musk is leaning towards Bitcoin again

The tech madman Elon Musk’s entanglement with Bitcoin is like a soap opera. In a few months, his attitude towards Bitcoin swayed left and right, making viewers feel crazy and absurd.

At the “The B Word” Bitcoin Conference held on July 21, Musk once again “updated” his views on Bitcoin. He emphasized that he is a supporter of Bitcoin and cryptocurrencies, and both Tesla and SpaceX he founded hold Bitcoin. Musk also disclosed the types of his encrypted asset holdings-Bitcoin, Ethereum and Dogecoin, and the proportion of Bitcoin he holds far exceeds the latter two.

When Musk talked about Bitcoin again, the crypto-asset market was over. Earlier on May 13, Tesla announced the suspension of accepting Bitcoin payments. Musk said on Twitter, “We are concerned about the rapid increase in the use of fossil fuels in Bitcoin mining and transactions.”

Musk needs Bitcoin

Musk points out that Bitcoin is not environmentally friendly

Environmental issues have become a legitimate reason for Musk and Tesla to “keep the door out” of Bitcoin. Although many proponents of encrypted assets do not buy it, this iconic incident has finally become the extinguishing agent for the bull market.

After Tesla announced the suspension of accepting Bitcoin payments, the crypto asset market fell. On May 13, Bitcoin fell from a minimum of $55,500 to $45,880, a maximum drop of more than 17%. In the following few days, Bitcoin has been in a downward trend until the “5.19” plunge, and Bitcoin has dropped to a minimum of 29,000 US dollars, which has been cut from the high point of the bull market. Up to now, the encrypted asset market has not recovered its vitality, and Bitcoin has maintained wide fluctuations around $30,000.

Of course, we can’t blame Musk for Bitcoin’s plunge, but Musk is always present in the prelude to the peak and collapse of this round of crypto asset bull market.

On January 29, Musk changed his Twitter signature to Bitcoin. People rushed to tell that Bitcoin soared from $33,000. On February 8, Tesla announced that it had purchased $1.5 billion in Bitcoin. The news came out. , The price of Bitcoin broke through the $50,000 mark; on March 24, Tesla accepted Bitcoin as payment, and it didn’t take long for Bitcoin to skyrocket by more than $60,000.

This tech automaker with 58 million fans has become the hottest “calling single king” in the currency market in the first quarter of this year. However, when crypto-asset investors deified Musk, he changed his face unexpectedly. First he questioned Bitcoin’s environmental friendliness, and Tesla immediately announced the suspension of accepting Bitcoin payments; then he accused Bitcoin of being controlled by a few mining companies. , While satirizing the centralization of BTC, promoting Dogecoin. After the market fell, when netizens began to accuse him of “remarks” and suggested that he and Tesla quickly sell bitcoin and leave the market, he clarified that “Tesla did not sell any bitcoin.”

Frequent swings in attitudes toward Bitcoin have left Musk burdened with a reputation for market manipulation. And now, after Bitcoin plummeted, he has returned as a “supporter” again.

At the “The B Word” summit, Musk claimed that Tesla may once again accept consumers to buy cars with Bitcoin because “it looks like Bitcoin mining is using more and more renewable energy.” He also said that Starlink, a space star chain network initiated by SpaceX, has already tested a full Bitcoin node and can also be used as a mining node for Ethereum or Dogecoin.

As soon as this remark came out, the market followed suit. Bitcoin rose from $29,900 to $32,000 on July 21, a single-day increase of 7%. During the market downturn, Musk again expressed his belief in Bitcoin, “Now I may buy, but I will not sell.”

Why is it “changing face” again? Tesla’s earnings report will be out

Musk’s attitude towards Bitcoin has changed like a roller coaster, from holding high the flag of cryptocurrency to turning the other side, and then reaffirming his identity as a “supporter” in only half a year.

Why did Musk start “crazy milk” Bitcoin again?

“The B Word” Bitcoin Conference gave him a voice. July 21st is also a coincidence. In 5 days, Tesla’s financial report will come out.

Earlier, Tesla has announced that it will release its second quarter 2021 financial report after the US stock market closes on July 26, Eastern time (July 27, Beijing time). At that time, the outside world can get a glimpse of the company’s subsequent Bitcoin holdings. Although the second quarter financial report does not count July data, the price of Bitcoin can be seen in real time. If Bitcoin continues to fall, Tesla may suffer a huge loss. .

Previously, according to Fortune website estimates, Tesla bought a total of 46,000 bitcoins from the beginning of the year to early February, at an average purchase price of approximately $32,600, for a total of $1.5 billion. In April of this year, Tesla disclosed that it sold 10% of its bitcoins in the first quarter, or about 4,600, with an average price of $59,100. This transaction brought in revenue of US$272 million for the company, and a pre-tax profit of approximately US$121.9 million.

According to this calculation, if Tesla has not sold or increased its holdings of bitcoins since then, Tesla still holds 41,400 bitcoins. After deducting the profits that have been settled, its true cost should be US$1.228 billion, which means that its single The currency cost price is approximately US$29,661.

In the heyday of the bull market, this cost range was enough for Tesla to sit back and relax. Calculated according to the high of $64,800 in Bitcoin, Tesla’s book maximum floating profit reached $1.45 billion, and the return on investment was close to 97%. However, Bitcoin has been falling all the way in the past two months. On July 20, Bitcoin fell to a minimum of 29,288 US dollars. This price has already caused Tesla to suffer a loss, with a floating loss of approximately 15.44 million US dollars.

Musk needs Bitcoin

Bitcoin once fell below Tesla’s holding cost line

If Bitcoin drops to US$25,000, Tesla is expected to lose US$193 million; when Bitcoin falls to US$20,000, Tesla is expected to lose US$400 million, which is equivalent to its net profit attributable to ordinary shareholders in the first quarter of this year.

Due to the huge volatility of Bitcoin, once it enters a bear market cycle, it is not impossible that the price will fall to $20,000. Although Tesla is wealthy, if he makes a huge loss from investing in Bitcoin, it may trigger a chain reaction and form a major crisis. This is obviously not the result that Musk wants to see.

During the high price period, Musk may be able to speak arbitrarily, but as the price of Bitcoin drops to around Tesla’s cost line, Musk has to be cautious. After all, there are many institutional shareholders and shareholders holding shares behind Tesla, which is not what Musk said. No matter how much wealth he has personally, he certainly does not want his investment to end up at a loss.

In fact, due to the supply chain problems caused by the pandemic, coupled with multiple accidents of Tesla’s vehicles worldwide, the company’s stock price has continued to fall this year. As of the close of business on July 21, EST, Tesla The stock price is US$655.29, which is 27.19% lower than the high of US$900 at the beginning of the year.

CFRA analyst Garrett Nelson observed that so far this year, the performance of Tesla’s stock price has significantly lagged behind major OEMs such as Ford and General Motors.

The performance in the U.S. stock market is not satisfactory, and Musk obviously does not want to suffer losses in the encrypted asset market.

Encryption field becomes Musk’s influence value-added point

On July 22, Musk bluntly stated that two-thirds of the “personal and professional pain” he experienced came from the management of Tesla. Some netizens asked jokingly, did the other third come from Bitcoin?

It is undeniable that after frequent vocalizations in the crypto asset industry, Musk’s label has increased, and he has become an opinion leader in this industry. Looking back on Musk’s life trajectory, he has always been keen to become a pioneer in various emerging fields, and the snowball of personal influence is getting bigger.

In 2002, Musk founded Space X, a space exploration technology company, and shouted the slogan of emigrating to Mars and creating space civilization. When people regarded him as a lunatic, he successfully launched the first rocket in 2006 and has become famous ever since. Noise; In 2004, Musk founded Tesla, becoming the Taishan Beidou in the history of human electric vehicles, leading the traditional car manufacturers by N positions; in 2016, Musk acquired the largest civilian solar company in the United States, SolarCity, in the world Contributions have been made in the energy sector that has received much attention.

As his influence continued to expand, Musk was crowned the “Silicon Valley Iron Man” and became the idol of global entrepreneurs. In addition to his personal talents and billions of assets, his influence is regarded by the outside world as his greatest hidden wealth.

How does Musk exert his influence? Not to mention that one of his tweets can bring dramatic volatility to the crypto asset market. In the more than ten years since Tesla was founded, this company has set an unprecedented record, that is, it hardly advertises, but it has become The world’s leading commercial brand.

Compared with well-known brands such as Coca-Cola, McDonald’s, Toyota and so on, spend billions of dollars on advertising every year, Tesla does not even have an advertising and marketing department, because Musk is Tesla’s best spokesperson. Currently, his Twitter followers exceed 58 million, which is more than the population of Spain, Argentina and other countries. Through free social media and guest TV shows, Musk has continuously exported his personal style and charm to the Tesla brand, and finally achieved a legend in the history of business.

When people call Musk “the richest man in the world,” they don’t know that his huge influence in the global market is also his greatest wealth. Recognizing this, it may not be difficult to understand why Musk’s attitude towards Bitcoin has been swaying from side to side in a few months? Why didn’t Tesla realize that Bitcoin was “not environmentally friendly” in March? Musk is a natural topic maker, and causing conflicts and contradictions is often the most effective way to expand influence.

Nowadays, when people compare Bitcoin with Musk, it means that Musk’s influence has penetrated into the field of encrypted assets and even the blockchain. In this new world that is likely to subvert traditional finance and production relations, Musk has once again become a pioneer and opinion leader.

Compared with Bitcoin’s creator Satoshi Nakamoto and Ethereum founder Vitalik, Musk is a full-fledged latecomer in this field, but he has actually set up his personal signature, and his impact on this market is no less than that of being A young man called “V God”.

When the price of Bitcoin has repeatedly jumped up and down because of Musk’s remarks, people may subconsciously feel that Bitcoin needs Musk’s flag wave. However, for more than ten years of development, the Bitcoin market has always followed its development trajectory and change cycle. When the outside world attributed the cause of Bitcoin’s plunge to Musk’s defection, everyone did not know that the famous Bitcoin rainbow chart had already reminded the market at that time. With bubbles and increasing greed, his remarks happened to be the beginning of a collapse story.

A few days ago, a ridicule made by members of the Ethereum community about the London upgrade could cause ETH to drop by a few points within 1 minute. After all, the crypto asset market is still too small and fragile, and the speeches of big V with many fans are the best emotional detonator.

Musk needs Bitcoin

The Bitcoin rainbow chart once indicated that “there is a bubble” at a high price

Not so much that Bitcoin needs Musk, it’s better to say that Musk needs Bitcoin. He not only wants to reap the return on investment from the rise of Bitcoin, but also needs to act as a leader in this emerging hot spot and continue to expand his “hidden wealth.”

Soon, Tesla’s second-quarter earnings report will be released. The company’s Bitcoin holdings will inevitably become the next hot topic, and how much Musk believes in the crypto asset market can also be seen

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/musk-needs-bitcoin/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-07-26 05:30
Next 2021-07-26 05:31

Related articles