Musk Draws Shock and Sympathy on Reddit After Tesla Sold Bitcoins – TheStreet

It is an understatement to say that tesla’s (tsla) announcement on July 20 that the company had sold most of its bitcoin caused a shock in the cryptocurrency industry.

Austin’s premium electric vehicle maker and its charismatic CEO, Elon Musk, gave cryptocurrencies, and in particular bitcoin, real credibility on February 2nd. on January 1, 2021. That’s when they invested $1.5 billion in the king of digital currencies.

Reading: Tesla bitcoin reddit

so how to interpret the sale of all these bitcoins, especially when tesla now owns only a small part of bitcoin, valued at $218 million?

On the social network reddit, land of many merchants of generation z and millennials, the news came like a thunder. musk has a legion of fans there, and crypto is one of the favorite asset classes, along with meme stocks like gamestop (gme) and amc entertainment (amc )).

‘one of us’

“elon better delete his tweet last year about tesla having ‘diamond hands,'” one user posted.

what this user is saying is that if tesla had a nose for good investments, the ev maker would never have invested in an asset whose value has plummeted more than 67% since its peak. That was $69,044.77, reached on November 10, according to data firm Coingecko.

Bitcoin is currently trading around $22,612. Last month, the cryptocurrency fell to around $18,000 due to uncertainties in the economy and a liquidity crunch that hit crypto lenders like voyager digital, celsius network, blockfi, babel finance, and others.

“elon said he wanted to prove a point (that bitcoin is a liquid asset),” another user commented.

See also: Confessions of a Bitcoin believer: One former miner&x27s journey from zealot to skeptic | Fortune

“It’s almost as if the crypto brothers’ echo chamber is a self-fulfilling prophecy,” another reddit user added.

“I guess he lost interest,” said one user. “probably too busy thinking about tunnels on mars or something equally ridiculous.”

Tesla is the sixth most valuable company in the world and is run by one of the richest and most innovative people in the world. the idea that the company had perhaps also broken its teeth on bitcoin seemed to comfort some young traders who lost their savings in the cryptocurrency market crash. the market has lost $2 trillion since November.

“I can now say I’m trading crypto like the richest man on the planet. buy high, sell low. I’m a bit of a genius, thanks,” one user wrote.

“he’s one of us!!!” another agreed, referring to musk.

“buy high, sell low,” said one user.

“one of us! one of us! one of us!” repeated another user.

will tesla buy back bitcoin?

“elon is a confirmed shit follower. I can see him fomoing and buying high/selling low like the pros do here,” said one user. the writer used the slang word fomo, which means “fear of missing out,” that nagging feeling you get when you’re convinced that others are having better experiences than you.

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these posts clearly show the dynamics that prevailed in the crypto market in the second half of 2021. many retail investors, attracted by the crypto craze, bought coins as prices rose and found themselves selling them off this year and losing heavily . prices collapsed.

At the start of the second quarter, Tesla still had about 42,000 bitcoins on its balance sheet worth $1.26 billion, according to a report from the Securities and Exchange Commission.

If the group sold 75% and raised $936 million as it said on July 20, the company appears to have lost $106 million in total, because it said it still has $218 million worth of bitcoin.

“let’s wait and see if they buy back after the federal meeting,” one reddit user commented.

“maybe they’ll go for something different this time,” another user posted.

“it should be mentioned that the reason we sold a bunch of our current [bitcoin] holdings was that we weren’t sure when the covid lockdowns in china would ease,” musk told analysts on the second earnings call. trimester.

“therefore, it was important for us to maximize our cash position given the uncertainty of the covid lockdown in china.”

“We are certainly open to increasing coin holdings in the future, so this should not be taken as a verdict on bitcoin,” the billionaire added.

See also: Bitcoin Prime è davvero una truffa? Recensione 2022


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