Tesla, Bitcoin, company shares, and prospects


The act of Tesla and its owner and director Elon Musk can be regarded in different ways. But hardly anyone will be able to reproach Musk. Bitcoin is not a green asset at all. A huge amount of electricity is spent on its production, and for the production of electricity you have to pay with carbon dioxide emissions into the atmosphere, which goes against the main idea of Tesla about the production of environmentally friendly cars. But it is still a business. Bitcoin is profitable, and any business was created to make a profit. Therefore, the investment in Bitcoin by Tesla is not surprising at all. The question is, what are the consequences of this step? First, as we have all seen, bitcoin has grown by $10,000 out of the blue, although one and a half billion dollars is much less than 1% of the capitalization of all bitcoins. It cannot be said that Tesla's deal has had an extremely strong impact on the cryptocurrency market and caused an imbalance between the supply and demand of cryptocurrency. Secondly, the whole world saw firsthand that one tweet in a social network from such a well-known and respected businessman as Elon Musk can lead to an increase in the "cue ball" by $5,000. Imagine what would happen if, following Tesla, other companies also spoke positively about the "cue ball" and invested a small percentage of their reserves in it! Tesla did not invest the last money in bitcoin. We are talking about a few percent of the reserve fund, so the said company is not really risking anything, but at the same time created such a hype around the number 1 cryptocurrency. In its scale, $1.5 billion is not so much. But here is a paradox. While bitcoin, if it continues to rise in price (after all, it has already risen in price, therefore brought profit), increases the capital of Tesla, then it can be said that the value of the shares of this company decreased after the investment in bitcoin was made. Thus, Tesla lost a certain amount on the fall in the value of its own shares. Approximately, the same trend was observed in the company MicroStrategy, which also invests in bitcoin. After the statements of Elon Musk and the deal, the shares of this company fell by a quarter. Therefore, it is possible to track the trend that investing in bitcoin reduces the interest in stocks among investors. Perhaps bitcoin is the future and it will become the single settlement currency of the internet one day, but so far many investors are still very skeptical about it. Not everyone is wildly enthusiastic about it and wants to invest their last savings. For us, it remains an extremely volatile instrument on which to make money.

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