Elon Musk Selling One of His Bitcoins
Tesla Can Present Good Reports Thanks to Bitcoin
According to Elon Musk, Tesla Inc has sold 10% of its Bitcoins to show the liquidity of this cryptocurrency. Although, Elon Musk himself didn’t sell his holdings of Bitcoins. In a report from Tesla, the company bought $1 Billon tokens at the beginning of the year and earned $101 Million by making sales. On his Twitter account, Musk said that the company is trying to prove the token’s liquidity and explain that these tokens are better than holding on to cash assets.
Tesla’s investment in Bitcoin forced other companies in the world to consider investing in this cryptocurrency. There are still many companies out there who consider Bitcoin investment too risky. Still, according to Zachary Kirkhorn, Chief Financial Officer of Tesla, the company believes that Bitcoin has a bright future and good value in the long term.
Several Strategists believe that Bitcoin is just a speculative investment rather than a genuine alternative to cash. For Example, BCA Research Inc believes that Bitcoin failed to create its value as a natural alternative to money because of the volatility of the token.
Despite all this, Musk has good high-profile supporters for bitcoin, and as of later last month, Tesla allowed buyers to make payments for its vehicles in Bitcoins. At 12:16 on Tuesday in Tokyo, the value of Bitcoin increased by 1%, standing at $53,765. In mid-April, the value of Bitcoin $64,870, but as of now, it is still seven folds up from last year. Even though Tesla gained a significant profit in the first quarter, the company fell by 3.1% with the recent results.
Short Explanation on Bitcoin
Bitcoin is a virtual currency that is the first in the cryptocurrency category. Bitcoin can be used just like cash, you use it to buy goods online, but this currency yet to be legalized by some countries; moreover, not every e-commerce store accepts Bitcoin payment. However, gradually many companies are allowing Bitcoin transactions; for instance, In October last year, PayPal announced that its customers can now perform transactions using Bitcoin.
One should need a digital wallet to store Bitcoins. With the Digital Wallets, you can send or receive Bitcoins. Transaction of Bitcoin is recorded on a Public List known as Blockchain. With Blockchain, it is easier to track each transaction to prevent any illegal activity through Bitcoins.
Bitcoin can be bought using real money. Moreover, to get Bitcoin, you can also get from another as payment for some product that you are selling.
Bitcoin can also be created through computers. This method is also known as Mining. Mining can be done by allowing your computer to process transactions. But this process is becoming difficult day by day to stop the excessive creation of Bitcoin. If you want to get Bitcoin through Mining, it will take you years to make one Bitcoin.
The value of Bitcoin is increasing because people accept it as a source of payment in return for goods. People like Bitcoins because one of the reasons is that no government or bank has control over it. Another reason is that people can perform transactions using Bitcoins anonymously. Elon Mask also exposed himself as one of the biggest supporters of Bitcoin. Social Media has shown people that Elon Must is playing a vital role in the increasing popularity of Bitcoins. People are also following him because of his influence as the world’s richest man. Because of Mr Musk’s involvement, Bitcoin’s value has increased a lot in recent years.
As every Bitcoin is recorded on Blockchain, it is difficult to copy or make fake Bitcoins. Although, there is a possibility that you can lose your Bitcoin. There have been cases of Bitcoin theft in recent years. Since its creation in 2009, Bitcoin’s value has fluctuated a lot because many people still believe that it is not a good idea to convert your real money into Bitcoin.
Should I Buy or Sell Bitcoin at This Time?
According to several cryptocurrency advisors, the market is fragile now and exposed to manipulation by many scammers whose motives are to destroy the cryptocurrency market. That’s why advisors are telling people not to keep hold or buy Bitcoins.
Bitcoin investment is only for those people who can afford to risk a moderate or high amount of money to lose. One should invest that amount in Bitcoin that is reasonable to lose. Figures proved that Bitcoin and other cryptocurrencies could drop up to 10% in a single day and up to 80% in a year. Although, these considerable drops in the value of cryptocurrency are unlikely now because of the growing popularity of Bitcoins. Many big industries are investing in Bitcoin, so there is no need to panic-sell Bitcoins. According to Terry Sawchuk, CEO of Sawchuk Wealth, Bitcoins are still volatile, but it is unlikely that their value will drop down to zero or nothing.
There are still developments yet to make by the Securities and Exchange Commission to allow Mutual Funds and EFTs on Bitcoins. According to cryptocurrency and financial advisors, one should invest in Bitcoin by adequately studying the market to a limited extend. Only 3% to 5% is the maximum limit of a person’s assets that he/she should invest in Bitcoin. According to Ron Brown, co-founder of Athlete Essentials, the limit to invest in Bitcoin should be 1% to 2% as per client portfolio. He also said that 2% is the maximum limit, and after investing this much amount, it is recommended that clients wait for things to go better and then figure out which cryptocurrencies will survive. Paul Schatz advised clients to limit their investment to between 0% to 10%.
In short, there is no such time that one should desperately sell their Bitcoin. Although, if someone is willing to invest in Bitcoins, he/she should limit their investment and invest only that amount they can afford to lose.