Tesla will no longer accept Bitcoin

I don’t use nor do I really understand anything to do with Bitcoin, but for those interested:

Odd decision for Tesla to buy $1.5bn in Bitcoin in February, and then u-turn yesterday, devaluing the currency by 10%

As much as I respect Elon Musk’s achievements, he behaves like an amateur Reddit day trader, and that’s not good for Tesla…

Unless I’ve misunderstood some kind of masterplan here - perhaps he plans to exchange the Bitcoin for a more environmentally sound crypto-currency (doing so would then boost the value of that currency, like Musk did for Bitcoin when Tesla originally bought that).

Might be a smart hustle, but if Tesla pumps-and-dumps like this, the SEC will smash them.

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Pretty sure the only reason Elon did this was to push the price of Bitcoin up and make him a buttload of cash.

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How so? Tesla still holds the majority of it’s $1.5bn Bitcoin hoard. And their announcement devalued the currency by 10%

I was thinking more of Elon than Tesla. That announcement that Tesla where investing in BTC essentially drove the price through the roof

The sceptic in me thinks that this was orchestrated by Elon to drive up his own BTC holdings so he could sell them for a significant and quick profit

Two things:

  • Elon’s smart enough to know the blockchain isn’t really an anonymous network, so his personal transactions could be traced back to him
  • Elon’s a peculiar Big Tech CEO in that he doesn’t seem driven by accumulating cash and material possessions. He did buy some fancy houses at first, but then decided to sell them all
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I completely agree with both statements but Elon has proven in the past:

  1. He doesn’t really care what other people think (including the SEC)
  2. He might not be driven by collecting money but he does need large amounts of it for SpaceX.

To keep on topic though, I think it’s a smart move by Tesla in terms of the environment but I wonder why they weren’t thinking about this when they decided to put all that money in BTC

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Very true. One of my all time favourite tweets:

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Whoops…

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He also has a long history of using social media to mess around with markets, but it’s been the stock market and Tesla’s share price up until now.

Elon Musk tweet about ‘too high’ share price sees Tesla plummet $14bn in value | The Independent | The Independent

He knows that he can muck about with the price of anything by tweeting about it, so I suspect it has become a bit of a game for him.

He’s done a good thing in a way, can get more crypto for your cash right now. It has its peaks and troughs so it’ll just go back up in value at some point.

Bitcoin has been trending sideways for a while now, ETH has been climbing well but my relatively small holding has died to the tune of 750 to 600 since Elon’s tweet

But as is the general rule with crypto, no paper hands; HODL. Dips (especially ones of this nature) are just there to allow you to keep a lower dollar cost average until it goes up again :^

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