Building cars is not as good as speculating in cryptocurrencies.
He invested in Bitcoin, promoted Dogecoin, and even claimed that there would be Martian coins in the future... Elon Musk, CEO of Tesla, who has always regarded money as a "data entry" and does not play by the rules, instantly became the "number one promoter in the cryptocurrency circle."
Last year, Musk, who was targeting new businesses, took the initiative to endorse Bitcoin. Not only did he frequently express his optimism about Bitcoin in public, but according to documents submitted by Tesla to the U.S. Securities and Exchange Commission (SEC), in order to obtain "maximum cash returns", Tesla has purchased about $1.5 billion worth of Bitcoin, and said that it may acquire and hold digital assets for a long time, and also plans to allow consumers to purchase Tesla products with Bitcoin.
Almost single-handedly, Musk has pushed the price of Bitcoin and Dogecoin, which had been somewhat adjusted, back to the high ground. At the end of January, as a Twitter celebrity with more than 47 million followers, Musk led to a more than 15% increase in Bitcoin by simply adding the#bitcointag to his profile. After Tesla announced its purchase of Bitcoin, its trading price also rose by nearly 20% to the $40,000 mark on the same day, and began to soar all the way.
"Musk's personality and main user groups are more likely to accept Bitcoin. In short, it is cutting-edge and cool."
In the view of a blockchain industry practitioner, the decentralized nature of the current financial market provides excellent opportunities for the asset market, which is also the goal that Tesla CEO Elon Musk has been working hard and hopes to achieve.
Tesla's move into the Bitcoin market has brought the company considerable profits. According to an analysis by the US technology media Electrek, although Tesla did not disclose the specific amount and price of Bitcoin purchased, based on the average price of $35,000 per Bitcoin in 2021, Tesla now holds about 43,000 Bitcoins. Considering that the price of each Bitcoin was about $52,000 at the time, the market value of Bitcoin held by Tesla was as high as $2.2 billion, making the company profit more than $600 million from its Bitcoin investment.
Musk was deeply moved by the successful Bitcoin investment. He said that he should have bought Bitcoin eight years ago. He also believed that Bitcoin would be widely recognized by traditional financial professionals in the future. In addition, he also believed that among virtual currencies, Dogecoin, which is second only to Bitcoin, would become the currency of the future.
However, although Musk had come into contact with Bitcoin in 2013, he did not pay enough attention to it in the early days. He revealed that he once had 0.25 bitcoins given to him by a friend, "but he didn't know where he put the bitcoins."
Judging from public information, although Musk entered the cryptocurrency field relatively early, his ability to understand things is beyond the times and highly matches the culture and values of the entire cryptocurrency. Although contrary to the view of Warren Buffett, the stock god who regards Bitcoin as "rat poison", Musk's imaginative technological innovation projects, such as the brain-computer interface company and the interstellar spacecraft, have made him an investment vane for retail investors.
When Musk made a high-profile entry into the "cryptocurrency circle", some analysts even believed that Musk's influence on cryptocurrencies was like the influence of Federal Reserve Chairman Jerome Powell on stocks.
Cryptocurrency itself contains strong cultural attributes and religious overtones. Elon Musk’s involvement is like a Buddhist missionary preaching to an emperor, connecting ideas with dynamic leaders, significantly enhancing the spread and influence of the entire cultural circle. “Musk’s involvement is an important historical moment for cryptocurrencies.”
In an article in Forbes magazine, author Leeor Shimron conducted a comparative analysis of Tesla, Bitcoin, and the S&P 500. It was found that Tesla and Bitcoin showed a strong correlation of 0.615 in the past 6 months, far exceeding their correlation with the S&P 500. This shows that the people who invest in Bitcoin and Tesla are likely to be the same group of people.
On one side are like-minded investors, and on the other side is the appeal of a single call. When Musk realized his unlimited potential in the digital asset market, entering the virtual currency circle seemed to be a natural thing.
As for Musk, although he regretted being "late to the party" in cryptocurrency, from the very beginning, it was his grasp of payment and currency that allowed him to earn his first pot of gold in the true sense of the word on his entrepreneurial journey.
In 1999, Musk founded X.com, a financial management and investment service platform, which was later merged with a competitor and renamed PayPal. As one of the earliest online payment service providers, PayPal was six years earlier than Alipay.
After PayPal was acquired, Musk received a return of $328 million. It was this money that enabled him to invest in Tesla and create SpaceX. In a sense, without PayPal, there might not have been the legends created by Tesla and SpaceX.
However, when Musk was deeply involved in "cryptocurrency speculation", Tesla's stock price began to fall due to recalls and quality issues. At that time, Tesla's stock price fell by 2.4%, causing Musk's wealth to decrease by $4.6 billion. As a result, he had to leave the position of the world's richest man, and Amazon founder Jeff Bezos returned to the top of the rich list.
However, Musk doesn't seem to care too much about being the richest man or the fluctuations in his wealth. With a new round of financing for SpaceX, he has regained the throne of the richest man. Despite some fluctuations in the stock market and wealth rankings, Musk seems to remain calm about it.
Musk frequently mentions cryptocurrencies on Twitter. In response to skepticism about his behavior, he said that Bitcoin is as liquid as cash and said: "When real interest on fiat currencies is negative, only a fool would not look elsewhere."
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