Is this a concern:
Bitcoin network average energy consumption per transaction compared to VISA network as of 2020
(in kilowatt-hours)
Bitcoin Energy Consumption Index - Digiconomist
Tesla’s share price is now directly tied to the value of bitcoin, analyst says
Tesla’s share price is now directly linked to the price of bitcoin after Elon Musk’s company invested $1.5 billion into the volatile cryptocurrency, according to Daniel Ives, an analyst at Wedbush.
“Musk is now tied to the bitcoin story in the eyes of the Street and although Tesla made a billion paper profit in its first month owning the digital gold, it comes with added risk, as seen this week,” Ives told CNBC via email on Tuesday.
He added: “With Tesla diving into the deep end of the pool on bitcoin, Musk runs the risk that this side show can overshadow the fundamental EV (electric vehicle) vision in the near term for investors.”
Despite some concerns, Ives still believes that bitcoin is a “smart move at the right time for Tesla.”
Ives estimated on Monday that Tesla has already made over $1 billion off its investment in the cryptocurrency.
“On the downside it’s playing with firecrackers and risks and volatility are added to the Tesla story,” Ives said.
Week of turmoil
Tesla and bitcoin have both seen big losses this week.
Shares of Tesla fell more than 11% when the market opened on Tuesday, a day after the stock’s biggest loss in months. Tesla shares closed down 8.55% on Monday, as investors betting on a pandemic comeback rotated out of Big Tech and piled into cyclical stocks. It was Tesla’s biggest drop since Sept. 23, 2020, when it closed down 10.34%.
Bitcoin’s price descended further on Tuesday after U.S. Treasury Secretary Janet Yellen issued a warning about the cryptocurrency.
On Monday, Yellen called bitcoin an “extremely inefficient way of conducting transactions” and warned about its use in illicit activity. She also sounded the alarm about bitcoin’s impact on the environment. The token’s wild surge has reminded some critics of the sheer level of electricity required to produce new coins.
The world’s most valuable digital coin has plunged 16% in the last 24 hours, sinking below $50,000 to trade as low as $45,389 at 4:10 a.m. ET, according to data from Coin Metrics.
Tesla’s bitcoin bet
Tesla announced in an Securities and Exchange Commission filing earlier this month that it has bought $1.5 billion worth of bitcoin and that it would start accepting bitcoin as a payment method for its products.
Musk has been tweeting about the cryptocurrency on and off ever since, raising alarm bells in some corners. He’s also been tweeting about other coins like Ethereum and Doge.
The billionaire changed his Twitter bio to BTC last month, causing it to surge 20%, and over the weekend he said the price of bitcoin and Ethereum seemed “high,” resulting in a sharp fall.
Eric Lonergan, a fund manager at M&G, said Tuesday that Musk’s actions on Twitter are a cause for concern.
“When your Twitter feed is non-stop about an asset, that is a huge warning signal,” Lonergan told CNBC Squawk Box Europe. “In the world of social media narratives, you’ve got to be very, very careful. When the personality of a CEO is 10 times bigger than the cars they’re manufacturing, you’ve got to take this stuff with…you know…this is very, very, very dangerous territory from an investment standpoint.”
Despite the recent drops, Wedbush is still bullish on Tesla, which is currently valued at around $780 billion.
“We believe Tesla will hit a one trillion market cap over the coming months through its EV growth and not through bitcoin,” Ives said.
“We believe EV adoption is skyrocketing globally, led by China, and this speaks to why Tesla is so well positioned to capitalize on this $5 trillion market over the next decade,” he added. “However, bitcoin for now is overshadowing the broader Tesla growth story for 2021 although we believe this will soon pass.”
Tesla and bitcoin'''s value are now linked, analyst says
This is going to get very messy. Bitcoin is a cyberdrug.
Excession - Wikipedia
Banks speaks of a decentralized civilization, anarchist, utopian, the Culture, which uses (for the purchase of spaceships in particular) a non-fiat currency called Credit
I wonder what Elon was smoking when he decided to tie Tesla to it.
100k by dinner time.
Dat not very nice! Especially when he turned down yours.
Square, Inc. Announces Fourth Quarter and Full Year 2020 Results Square also announced a $170 million purchase in bitcoin as part of its ongoing commitment to the cryptocurrency
February 23, 2021 04:00 PM Eastern Standard Time SAN FRANCISCO--(BUSINESS WIRE)--Square, Inc. (NYSE: SQ) has posted its results for the fourth quarter and full year of 2020 on the Financials section of its Investor Relations website at investors.squareup.com and filed these results with the Securities and Exchange Commission.
Square will host a conference call and earnings webcast at 2:00 p.m. Pacific time/5:00 p.m. Eastern time today to discuss these financial results. To register to participate in the conference call, or to listen to the live audio webcast, please visit the Events & Presentations section of Square’s Investor Relations website at investors.squareup.com. A replay will be available on the same website following the call.
Square also announced today that it has purchased approximately 3,318 bitcoins at an aggregate purchase price of $170 million. Combined with Square’s previous purchase of $50 million in bitcoin, this represents approximately five percent of Square’s total cash, cash equivalents and marketable securities as of December 31, 2020.
Aligned with the company’s purpose, Square believes that cryptocurrency is an instrument of economic empowerment, providing a way for individuals to participate in a global monetary system and secure their own financial future. The investment is part of Square’s ongoing commitment to bitcoin, and the company plans to assess its aggregate investment in bitcoin relative to its other investments on an ongoing basis.
no cock to smoke
We should have held that BNB. It is on fire.
not a fan of PnD,s - I only see fomo with BNB , not utility
I rotated mine out of BTC to another coin which is still rising vs BTC
Z.comEx
Of interest to people in Thailand looking to gamble their life savings on magic internet beans. A Japanese exchange opening a new Thailand based exchange with THB pairs. Or a place to sneakily cash out your millions with a lower tax burden? I don't know how Thailand is currently treating magic money.
Some people think it don't, but it be.
seems to be a few thai based exchanges - I only ever used BX before it shut
would be interested in seeing if there are savings for transferring money into the country
Trading on local exchanges surges to B14.8bn this month
So the SEC is currently (badly) in court action with Ripple. Yesterday the SEC published a document that supposedly puts the whole crypto-sphere on notice that this is just the beginning of the legal action. I'm not sure if it does cause I don't speak legalese. I'll wait for one of the Youtube lawyers to translate it into something a five year old can understand.
If anyone else wants a crack at it:
https://www.sec.gov/files/digital-assets-risk-alert.pdf
Last edited by PlanK; 01-03-2021 at 08:53 AM.
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