1. Tesla silently buys a bit of Bitcoin.
2. Tesla claims Bitcoin is a good investment and publicly they have bought it.
2. Bitcoin price started to increase as many institutions started to accept the digital currency as a payment method. But the main reason is because of the "Elon Market Theory", whatever Musk buys, rises in price.
4. Tesla silently sold a large amount of Bitcoin, making a profit of hundreds of millions of dollars.
5. Musk tweeted that Bitcoin's price was too high.
6. Bitcoin price begins to fall also by "Elon Market Hypothesis".
7. Go back to step 1.
On Monday, Tesla released its quarterly results and what happened as Levine predicted:
Tesla posted higher returns this quarter by generating $ 101 million from selling 10% of its Bitcoin holdings.
This is wonderful. Reporter Matt Levine sent his personal congratulations to Tesla and Elon musk. How do people feel about this? There were a few rumors that surfaced, suspecting that there was some kind of fraud when Tesla bought Bitcoin, Elon Musk liked it and then Tesla sold it.
A typical example is a Twitter user named Dave Portnoy who had a post that Elon Musk had tagged on about this. Dave used the word "pump" to describe Tesla's actions on Twitter. He wrote: "As I understand it: Elon Musk bought Bitcoin then he blew up, praised Bitcoin. Bitcoin price increased. Then Elon Musk sold out and pocketed a lot of money."
Elon Musk then responded under this post: "Oh no, I don't. Tesla selling 10% of its Bitcoin holdings is necessary to demonstrate Bitcoin's liquidity as an alternative channel to hold money. face".
Musk's response received nearly 100,000 likes, 16.4k retweets and nearly 5k
In fact, on Monday, Tesla CFO Zachary Kirkhorn said that Tesla sees Bitcoin as a way to store cash while maintaining liquidity, especially in the context of the array Traditional investment is becoming less attractive.
“We believe in the long term the value of Bitcoin. this money ".
In this regard, in his article, Levine reporter also clarifies a few points:
1. I don't think there has been any legal violation from Tesla's purchase of Bitcoin. They buy Bitcoin and then sell when the price goes up. There are no details that show that Tesla and Musk lied about deliberately manipulating the market.
2. I think Tesla's actions are quite interesting, I am happy for them and hope they will do the same.
3. I think if it's Elon Musk and has the ability to make Bitcoin's price go up through a single tweet, would you do that?
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